Logo of Phnom Penh Post newspaper Phnom Penh Post - Tax revenue exceeds expectations following reforms

Tax revenue exceeds expectations following reforms

An exterior view of the General Department of Taxation.
An exterior view of the General Department of Taxation. Pha Lina

Tax revenue exceeds expectations following reforms

The General Department of Taxation (GDT) collected $1.93 billion in tax revenue last year, a 30 percent increase over 2016 and well above the government’s own projections, according to the department’s director, Kong Vibol.

Following the GDT’s annual meeting in Phnom Penh yesterday, Vibol told reporters that the government expected to collect $1.71 billion, but reforms to the tax collection agency had resulted in the higher haul.

“It is a good result for the GDT and for the government, which reflects the efficiency of the reformat of the tax system,” he said, referring to the GDT’s tax overhaul in 2015.

According to Vibol, income-tax revenue and VAT collections increased by 31 percent, while real estate tax and salary tax increased by 12 percent and 10 percent, respectively.

Anthony Galliano, CEO of Cambodian Investment Management, said yesterday that the increase in revenue could lead to a decrease in the Kingdom’s reliance on foreign donors.

“If this performance continues, I expect the Kingdom can substantially fund its annual budget within 3 years with the combination of GDT and customs revenues,” he said.

Galliano added that some taxpayers remained concerned regarding the “assertiveness of audits”, and said it would be helpful if the GDT would continue to improve its application of tax laws and registration processes.

Clint O’Connell, head of Cambodia Tax Practice for foreign investment advisory and tax firm DFDL Cambodia, called the revenue number “truly remarkable” and credited GDT officials for their reforms to the department.

He also cautioned against predicting self-sufficiency in the annual budget, noting spending increases could accompany gains in tax revenue.

“There are a number of variables that need to be taken into account, such as the growing expectations of Cambodian citizens to see some return on the State revenue that is being collected,” O’Connell said.

Customs tax collection also increased last year, up 10.4 percent to $1.9 billion, according to a document dated January 23 from the General Department of Customs and Taxation.

MOST VIEWED

  • Joy as Koh Ker Temple registered by UNESCO

    Cambodia's Koh Ker Temple archaeological site has been officially added to UNESCO’s World Heritage List, during the 45th session of the World Heritage Committee held in Riyadh, Saudi Arabia, on September 17. The ancient temple, also known as Lingapura or Chok Gargyar, is located in

  • Ream base allegations must end, urges official

    A senior government official urges an end to the allegations and suspicions surrounding the development of Cambodia’s Ream Naval Base, now that Prime Minister Hun Manet has addressed the issue on the floor of the 78th UN General Assembly (UNGA 78). Jean-Francois Tain, a geopolitical

  • Cambodia set to celebrate Koh Ker UNESCO listing

    To celebrate the inscription of the Koh Ker archaeological site on UNESCO’s World Heritage List, the Ministry of Cults and Religion has appealed to pagodas and places of worship to celebrate the achievement by ringing bells, shaking rattles and banging gongs on September 20. Venerable

  • CP denied registration documents by ministry

    The Ministry of Interior will not reissue registration documents to the Candlelight Party (CP). Following a September 21 meeting between ministry secretary of state Bun Honn and CP representatives, the ministry cited the fact that there is no relevant law which would authorise it to do

  • Cambodian diaspora laud Manet’s UN Assembly visit

    Members of the Cambodian diaspora are rallying in support of Prime Minister Hun Manet’s forthcoming visit to the 78th UN General Assembly (UNGA 78) in the US’ New York City this week. Their move is an apparent response to a recent call by self-exiled former

  • After three deferrals, Capital Gains Tax to take effect Jan 1, 2024

    The General Department of Taxation (GDT) will implement the Capital Gains Tax starting January 1, 2024 to after being deferred three times as industrial players warn that the implementation might have some negative impact on the property market growth, which is down due to the economic downturn.