Kong Vibol, director-general of the General Department of Taxation (GDT), said the outcome for tax revenue collection over the past five years exceeded estimates.

In an interview with a local media outlet, Kong Vibol said that before the Covid-19 pandemic, the collection of revenue exceeded what was planned for by 23 per cent in 2019, while 2020 revenue collection was projected to decline from 40 to 50 per cent, but it instead exceeded the estimate by about one per cent.

He noted that the increase in 2020 came from 2019, when enterprises or companies that were late to file their tax returns paid taxes in 2020. The year 2021 saw many events cancelled, especially in Phnom Penh, but tax collection still exceeded expectations by more than 24 per cent.

“The year 2021 was also a good one. Although the country had been in lockdown, we still collected more taxes. In the past year, we still collected taxes beyond the estimates – around 22.54 per cent. So, over three years of Covid-19 we have done well,” he continued.

Vibol claimed that the situation of tax collection was better because of sweeping reforms at the GDT that began in 2013 and included areas like infrastructure and human resource management, the implementation of systematic registration and the strengthening of service delivery for taxpayers, easier tax filing and management, and investment in IT.

“The increase in tax collection was not only because of the general economic growth, but because we closed revenue gaps and strengthened the transparency of paying taxes for the national revenue, like bank tax payments. Currently, we’ve implemented it almost 100 per cent and especially launched the E-filing system for taxpayers,” he said.

At a January 25 public forum on macroeconomic management and the 2023 budget law, Ministry of Economy and Finance permanent secretary of state Vongsey Vissoth said the outcome for tax collection during Covid-19 showed that changes in the tax structure had not only improved tax collection but also helped Cambodia reduce its reliance on budget sources from outside the country to develop society and the economy.

“The situation of the Cambodian economy has improved. Changes in the tax structure enabled Cambodia to reduce its heavy reliance on money from the outside from 65 per cent to 11 per cent,” he said.

Hong Vanak, an economic researcher at the Royal Academy of Cambodia’s International Relations Institute, said the outcome of tax collections showed positive signs for the Cambodian economy and it made Cambodia more able to attract foreign investors.

“In 2022, the Cambodian economy has not yet recovered completely from the pandemic and global crises. However, all kinds of tax collection over these few years have reportedly grown. This shows that though in crisis, state revenue collection through taxes was still good and it also show that the activity of domestic business has improved, so it can stimulate the growth of tax revenue,” he said.

Prime Minister Hun Sen recently hailed the GDT for collecting around $3.455 billion of revenues in 2022, or 122.54 per cent of the target for the year, saying the body set an example for other state institutions to follow. This revenue has shored up the national budget during the health crisis and global geopolitical tensions.

According to the 2023 budget plan, the GDT is expected to collect $3.571 billion in taxes this year.