The Kingdom’s tax revenue increased 27.85 per cent in the first two months compared to a year earlier, a figure the opposition party said is low due to corruption and tax cheats.
According to the data from the General Department of Taxation (GDT), total tax revenue amounted to $122.17 million. Revenue from payroll taxes increased 17.1 per cent, revenues through income taxes went up 40.8 per cent, and property tax revenue rose 9.6 per cent.
Tax revenues from the telecoms sector made the largest jump at 94.3 per cent. The garment sector paid 41.8 per cent more in taxes, the transport and tourism sector brought 34.2 per cent more income for the government, while hotel and questhouse tax revenues increased by 20.3 per cent.
Kong Vibol, the newly appointed director-general of GDT said in a statement released earlier this month that the increase of tax revenues is a reflection of the rise of new businesses, and increased collection efforts.
He also said the department plans to co-ordinate with commercial banks to simplify the payment process and increase transparency.
Son Chhay, member of the parliament from the opposition Sam Rainsy Party told the Post that the rise is a drop in a bucket compared to how much tax revenue is lost through corruption.
“The increase is normal while our economy is growing and expanding with the flow of investments and new businesses opened,” he said.
He claimed that Cambodia loses between $400 million and $500 million in tax revenue a year due to collusion between tax collection officers and business tycoons to avoid paying taxes.
For the entirety of 2012, the government collected $740 million, according to the data from the GDT.
To contact the reporter on this story: May Kunmakara at [email protected]