The General Department of Taxation has released its strategy for the next five years in which it prioritises minimising the taxpayer burden and improving compliance.
According to its new strategic plan, from 2019 to 2023, GDT will have three main goals.
First, the agency will work to promote voluntary compliance and minimise the taxpayer burden by providing quality service. Second, it will make sure taxpayers meet their tax responsibilities by fairly and firmly reinforcing the tax law.
Finally, GDT aims to deliver high performance by strengthening its organisational structure and investing in its workforce.
“These three strategic objectives will be translated into detailed annual operational plans which will be in turn implemented effectively and efficiently in the due course with the focus on modernising the HR management system to improve the level of effectiveness and efficiency of the administrative and the management of HR related matters,” the agency said in a recent report.
“This also includes the creation of a big integrated data centre to improve the linkage and the synchronisation of taxpayer information with relevant government’s institutions and agencies,” it added.
GDT says it aims to become “a trusted and respected public organisation, recognised by our quality and expertise in tax revenue collection to promote economic growth and sustainability.”
To achieve its vision, GDT “aims to provide quality services and enforce the tax law with integrity and fairness to all, thereby promoting voluntary compliance and resulting in the development and well-being of Cambodia.”
In the report, GDT says that it will focus on building up the momentum of its current success to achieve better results in a more sustainable manner.
Chan Sophal, director of the Centre for Policy Studies, said in the past few years GDT has increased revenue collection, modernised its operations by adopting more advanced technology, and improved the climate for taxpayers.
“We appreciate what the General Department of Taxation has achieved so far. Tax revenue continues to increase every year, while paying taxes has become increasingly easier. The share of our GDP that comes from taxation is now very significant,” he added.
According to GDT, tax collection has increased by 15.4 percent, 22.1 percent, 18.5 percent, 18.7 percent, and 28.7 percent respectively in the last five years.
Tax revenue comes mostly from profit tax, domestic excise, and domestic VAT. GDT collected over $2 billion in tax revenue last year, an increase from 2017’s $1.93 billion.