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

  • Ministry orders all schools, public and private, to close for SEA Games

    From April 20 to May 18, all public and private educational institutions will be closed to maintain order and support Cambodia's hosting of the 32nd SEA Games and 12th ASEAN Para Games, said a directive from the Ministry of Education, Youth and Sport. Cambodia will host the

  • Almost 9K tourists see equinox sunrise at Angkor Wat

    Nearly 9,000 visitors – including 2,226 international tourists – gathered at Angkor Wat on March 21 to view the spring equinox sunrise, according to a senior official of the Siem Reap provinical tourism department. Ngov Seng Kak, director of the department, said a total of 8,726 people visited Angkor Wat to

  • Angkor Beer strengthens national pride with golden new look and fresher taste

    Angkor Beer – the "Gold of Angkor" – has a new look, one that is more stylish and carries a premium appeal, as well as a fresher taste and smoother flavour, making it the perfect choice for any gathering. Angkor Beer recently launched its new design, one

  • Water supply authority assures public shortages over early ‘24

    The Phnom Penh Water Supply Authority (PPWSA) asked for understanding from Phnom Penh residents in some communes where water pressure is weak. They assured residents that all supply issues will be resolved by early 2024, but have suggested that residents use water sparingly in the meantime.

  • Khmer ballet documentary debuts April 1

    A new documentary, The Perfect Motion, or Tep Hattha in Khmer, will premiere to the public on April 1. The documentary film follows two intertwined storylines: the creation of a show called Metamorphosis by the late Princess Norodom Buppha Devi (her very last production) and the

  • EU’s Sokha resolution ‘a sovereign rights breach’

    The National Assembly (NA) said the European Parliament (EP) did not respect the Kingdom’s independence and sovereignty when it passed a resolution strongly critical of the recent conviction and sentencing of former opposition leader Kem Sokha for “treason”. On March 16, the EP issued a