Logo of Phnom Penh Post newspaper Phnom Penh Post - Tax revenue nearly 50% of 2022 target: PM

Tax revenue nearly 50% of 2022 target: PM

Content image - Phnom Penh Post
Prime Minister Hun Sen speaking at a Ministry of Education, Youth and Sports meeting on April 27 reflecting on 2021 results and setting the 2022 agenda. SPM

Tax revenue nearly 50% of 2022 target: PM

Cambodia's tax revenue in the first four months of 2022 is expected to reach nearly 50 per cent of the goal set by this year’s Law on Financial Management, with first quarter revenue collected reaching just over 44 per cent, according to Prime Minister Hun Sen.

The Law on Financial Management for 2022, requires the Ministry of Economy and Finance’s General Department of Taxation (GDT) to collect $2.820 billion in revenue this year.

Speaking at a Ministry of Education, Youth and Sports meeting on April 27 reflecting on 2021 results and setting the 2022 agenda, Hun Sen said that effective control of the Covid-19 outbreak and a high rate of vaccination against the disease have strengthened Cambodia’s herd immunity, which has led to the Kingdom maintaining socio-economic stability and relaunching production lines promptly and efficiently.

He said he was “very pleased” with what Cambodia had achieved during the difficult period that was the Covid-19 crisis, especially the feat of a continuous increase in tax collected.

“We are proud that in the first three months of this year, the tax revenue has already reached 44 per cent of the plan … in just four months, the tax sector will have achieved up to 50 per cent of the Law on Financial Management for 2022. We will be able to achieve good results” for the rest of the year, he said.

“At the same time, export growth in the first three months of the year increased by 33 per cent, which is no small achievement. It has been made possible due to our good management of socio-economic activities and control of Covid-19, which has led to an immediate [positive] impact on production.”

Data from the GDT shows that the department collected $1.263 billion in the first three months of 2022, equivalent to 44.8 per cent of the goal set by the Law on Financial Management for 2022.

Exports for that period totalled $5.717 billion, according to data from the General Department of Customs and Excise.

Hong Vanak, director of International Economics at the Royal Academy of Cambodia, said that the increase in tax revenue indicates that the Cambodian economy has begun to recover after stagnating due to the Covid-19 crisis.

He speculated that the increase in tax revenue may be due to a combination of factors including the rapid reopening of the country and the rebounding of the Cambodian economy, along with increased population income, clearer tax collection procedures and ease of paying taxes through digital means.

“Increasing tax revenue will boost the ability of the government to use the resources collected to develop the country and for other public investments,” he said.

However, he said the collection of tax revenue in Cambodia could still be further improved through updates in tax law – especially in the real estate and construction sectors, which he noted are constantly evolving and changing.

In 2021, the GDT collected $2.782 billion in taxes, or 124.02 per cent of the goal set by the Law on Financial Management.

MOST VIEWED

  • ‘Education’ a priority traffic-law penalty

    A top National Police official on June 21 neither rejected nor confirmed the authenticity of a leaked audio message, which has gone viral on social media, on a waiver of fines for a number of road traffic-related offences. General Him Yan, deputy National Police chief in

  • Pursat Ford assembly plant opens

    The Kingdom’s first Ford assembly plant was inaugurated on June 16 in Pursat province amid rising demand for brand-new vehicles among Cambodians. The facility is seen as a game changer for the domestic automobile industry, which could bring a wave of investors seeking to cash

  • Volunteer scheme to foster ‘virtuous’ humanitarian spirit

    A senior education official said volunteer work contributes to solidarity and promotes a virtuous humanitarian spirit among the youth and communities. Serei Chumneas, undersecretary of state at the Ministry of Education, Youth and Sport, made the comment during the opening of a training programme called “

  • Siem Reap’s $18M zoo said to educate public, help wildlife

    Angkor Wildlife and Aquarium Co Ltd has invested $18 million in a zoo in Siem Reap province, which will be opened in October to educate and promote animal conservation as well as attract national and international tourists. Currently, the Angkor Wildlife and Aquarium is building the

  • $50B infrastructure plan en route

    The government’s upcoming $50 billion,10-year infrastructure master plan will provide tremendous investment opportunities for domestic and foreign entities, transport experts and economists say. Minister of Public Works and Transport Sun Chanthol revealed the plan to Japanese ambassador to Cambodia Masahiro Mikami on June 15. At

  • Chinese firms unveil preliminary results on metro, monorail for capital

    Minister of Public Works and Transport Sun Chanthol and representatives from China Road and Bridge Corp (CRBC) and its parent company, the state-owned China Communications Construction Co Ltd (CCCC), met on June 24 for talks on results of the firms’ preliminary study on a potential metro