Logo of Phnom Penh Post newspaper Phnom Penh Post - Tax revenue rises but at slower pace

Tax revenue rises but at slower pace

Tax revenue rises but at slower pace

The government’s tax revenue increased for the first five months of the year, but despite recent reforms, the growth rate is at a slower pace than for the corresponding period last year.

According to data from General Department of Taxation (GDT) released on Wednesday, the state collected about $443 million in taxes from January to May, compared with $394 million over the same period last year.

“Between January and May of the year, the tax revenue increased in all sectors,” according to GDT’s statement, which shows that revenue from taxes on salaries rose 19.2 per cent, those from company income went up about 20 per cent and VAT revenue increased nearly 6 per cent.

But the overall increase of about 12.5 per cent represents a deceleration compared with the 20 per cent rise in 2013 from 2012 in the same period.

Srey Chanthy, an independent economist said slowed growth of tax revenue comes down to the enforcement, or lack thereof, of proper tax rates on the border, introduced by the government last year. Unrest in Thailand, leading to less imports, also played a role.

“Since the government ordered the reform with the department, we have slow pro-gress of the revenue as many traders delay their imports due to higher costs. And the situation in Thailand recently also affects the revenue because we import both raw and finished products from Thailand,” he said.

Chanthy added that a lack of resources in the tax department also plays a role.

“The capabilities of our officers are still poor. The new head of the department has to clean up his institution, make paper work easier to comply with, improve his officer’s capability and try to modernise all payment via electronic system or the banks, this will make the revenue much better,” he said.

Meanwhile Kong Vibol, Head of GDT said in the statement he was encouraging taxation officers to continue enforcing the law and adhere to a professional code of ethics in order to improve the work efficiency.

MOST VIEWED

  • Proof giants walked among us humans?

    For years a debate has waged about whether certain bas relief carvings at the 12th-century To Prohm Temple, one of the most popular attractions at the Angkor Wat Temple Complex in Siem Reap province, depicted dinosaurs or some rather less exotic and more contemporary animal,

  • New US bill ‘is a violation of Cambodian independence’

    After a US congressmen introduced bipartisan legislation that will enact sanctions on Cambodian officials responsible for “undermining democracy” in the Kingdom, government officials and the ruling Cambodian People’s Party on Sunday said they regarded the potential action as the “violation of independence and sovereignty

  • Long way to go before Cambodia gets a ‘smart city’

    Phnom Penh, Siem Reap and Battambang will struggle to attain smart city status without adopting far reaching master plans, according to officials tasked with implementing the program. The brainchild of the Association of Southeast Asian Nations (Asean), the smart city program seeks to link up

  • Japan bank buys major stake in ANZ Royal Bank

    Japan's largest bank acquired more than half of ANZ’s shares in Cambodia on Thursday, according to a statement from Kith Meng’s Royal Group. Japan's JTrust Bank, announced that they had acquired a 55% of stake in ANZ Royal Bank. According to a Royal Group