Tax collection exceeds 50% of the financial plan
Tax collection in Cambodia has increased in the first four months of this year, reflecting the resumption of economic activities since the government fully reopened the country last November.
The General Directorate of Taxation (GDT) of the Ministry of Economy and Finance collected $1,501 million in tax revenue during the period January-April this year, or 53% of the financial management plan set for 2022 .
The data was released during a meeting last week between Managing Director Kong Vibol and an IMF delegation led by Alasdair Scott, Senior Economist in the Global Economic Studies Division of the IMF’s Research Department, and Yasuhisa Ojima, Representative IMF Resident for Cambodia.
Vibol said the increase in tax collection was largely due to the government’s strategy to contain the Covid-19 pandemic.
Despite the poor economic situation due to Covid-19 over the past two years, the tax collected by GDT exceeded the financial management plan, Vibol said.
In 2020, tax collection exceeded 101.3% of the plan and in 2021 it increased to 124%, he said.
In the first four months of this year, tax collection reached more than half of the financial management plan, he said.
“The remarkable collection result is due to the government’s strategy of timely vaccination against Covid-19, which has led to the resumption of socio-economic activities, pushing a sustainable macroeconomy,” Vibol said.
Prime Minister Hun Sen praised the good performance in tax collection and exports.
The prime minister said in April that the increase in tax revenue and exports was due to Cambodia’s good control of the Covid-19 pandemic.
“As the economy recovers, there will be more taxpayers paying higher taxes. Customs revenue also increased due to domestic demand. This year, we think our budget is not too difficult,” he said.
Customs revenue amounted to $800 million in the first four months of this year.
The Kingdom has two institutions responsible for collecting taxes. One is the General Tax Department (GDT), which focuses on domestic taxes such as income tax, payroll tax, value added tax and property tax, and l The other is the General Department of Customs and Excise (GDCE), which collects taxes. on goods entering or leaving the country.