Increasing tax incomes from all kinds of tax sources in 2022 reflected Cambodia’s better economic situation in the post-Covid-19 period, said Prime Minister Hun Sen.
Addressing the groundbreaking ceremony for road reconstruction on Friday, the Premier pointed out that the General Department of Taxation (GDT) collected more than $3.43 billion as tax income in 2022, which exceeded nearly 122 percent of the yearly plan.
The customs income collected by the General Department of Customs and Excises (GDCE) was recorded at $2.67 billion, reaching 104 percent of the plan, he said.
After Covid-19, only internal taxes, regardless of customs duties and non-tax revenues, are now starting to grow again, he said.
“The GDT earned $3.43 billion this year, 22 percent higher than the plan target, while the GDCE collected $2.67 billion, 4 percent higher than the target,” he said.
The increase in tax revenue collection was due to the tax system reforms, including the provision of services to taxpayers and good registration services, good audits, debt management and resolving issues to make it easier for taxpayers to pay their taxes, said General Department of Taxation’s director-general Kong Vibol.
Vibol said the government didn’t increase tax rates or imposed new taxes, but provided several incentives to the private sector during the Covid-19 period.
“After Cambodia recovered from the outbreak of Covid-19 and reopened its socio-economic activities, the import and export activities also improved,” he said.
The figures did not include the non-tax revenue, underlined by the premier, taking for example the non-tax revenue from visa fees of estimated 2 million foreign tourists, which would be about $60 million.
He stated that the tax revenue will provide an opportunity for the government to invest in building roads and other key infrastructure and to contribute to projects supported by development partners.
Cambodia has two institutions responsible for collecting taxes.
One is the General Department of Taxation, which focuses on interior taxes such as income tax, salary tax, value-added tax, and property tax, and the other is the General Department of Customs and Excise, which collects taxes on goods entering and leaving the country.
According to a government forecast, Cambodia’s economy is expected to grow by 5.4 percent in 2022 and 6.6 percent in 2023. The growth has mainly been driven by garment exports, construction and real estate, tourism and agriculture.
This article was first published in Khmer Times. All contents and images are copyright to their respective owners and sources.
