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

  • Diplomatic passports issued to foreigners to be annulled

    The Ministry of Foreign Affairs and International Cooperation will move to annul diplomatic passports issued to those not born in Cambodia. Analysts say the move may be in relation to reports that former Thai prime minister Yingluck Shinawatra used a Cambodian passport to register as

  • Hun Sen warns Irish MP of EBA ‘mistake’

    Prime Minister Hun Sen on Saturday told former Irish premier Enda Kenny, still a member of the EU nation’s parliament, that the 28-nation bloc should not make a “third mistake” regarding Cambodia by using the preferential Everything But Arms (EBA) agreement to “take 16 million

  • The hairy little heroes saving many lives in rural Cambodia

    IN RURAL Siem Reap province, rats dare to tread where no person will, as these hairy little heroes place their lives on the line each day for the good of the local community. The rodents are the most important members of a special team, leading

  • PM warns EU and opposition on 34th anniversary of his rule

    HUN Sen reached the milestone of 34 years as Cambodian prime minister on Monday and used the groundbreaking ceremony for a new ring road around Phnom Penh to tell the international community that putting sanctions on the Kingdom meant killing the opposition. “Please don’t forget