Tax revenue during the first nine months of the year exceeded $2.1 billion, an increase of 29 percent year-on-year according to the latest figures from the General Department of Taxation.
According to a press release from GDT yesterday, by the end of September, the government had already achieved 85 percent of its tax collection target for the whole year.
GDT said the increase in tax revenue is the result of sharp reforms in terms of regulation and administration and stressed the importance of having companies registered.
Prime Minister Hun Sen on Wednesday said revenue from customs and excise has increased markedly compared to last year. This, he said, allows the government to increase public investment.
Anthony Galliano, CEO of Cambodia Investment Management, said that Cambodia’s rapidly growing economy, increasing domestic consumption, growing population, stable foreign direct investment, efforts to crack down on smuggling, stricter enforcement by GDT, and rising imports are all contributing to robust tax collection.
GDT is progressively introducing reforms at an expedient pace, formulating the right balance between widening the tax community and stronger supervision through audits, without overburdening the taxpayer base, Mr Galliano said.
“This successful strategy is evident in the increase in the taxpayer population and annual collections. In particular, the GDT has correctly heightened its focus on the Khmer base, not only the foreign taxpayer base, which is the overwhelming majority to the existing and potential taxpayer infrastructure,” Mr Galliano said.
“The greatest benefit of the success of increased tax collection is that Cambodia is gaining financial independence, escaping from a donor-dependent economy. The stability and reliability of tax collection, leading to a national treasury base, will avail a foundation for social and infrastructure spending, and an increased standard of living,” he said.
Last year, tax revenue reached nearly $2.2 billion, a 17 percent increase compared to 2017.