Tax revenue grows 15% last year

Tax collection revenue grew by 15% YoY to $1.49bn in 2016, according to newly released data from the General Department of Taxation (GDT). Anthony Galliano, CEO of Cambodian Investment Management, said that progressive changes to Cambodia’s tax system have given the government greater control over the national economy and reduced its reliance on foreign aid. The higher tax revenue recorded in 2016 was the product of a series of reforms in recent years aimed at improving the efficiency of the tax regime and encouraging taxpayer compliance. On top of these was the GDT’s decision to abolish the so-called estimated tax regime (ETR), which covered mostly small enterprises, and bring all businesses into the fold of its more stringent “real” tax regime. The growth in tax revenue comes as more efficient customs procedure and enforcement yields higher customs and excise revenue. Last week, the General Department of Customs and Excise (GDCE) revealed that the country collected $1.74bn in customs and excise revenue in 2016, a 10% increase over the previous year. The combined revenue from GDT and GDCE topped $3.23bn, representing 74% of the $4.3bn 2016 national budget. (Source: Phnom Penh Post)