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Cambodia: Government income beats 2019 target
THE government hit a 20-year record in fiscal revenues from tax and Customs and Excise last year, exceeding the target and rising nearly a third year-on-year. Together they were nearly equal to planned expenditure.
According to figures from the Ministry of Economy and Finance, the revenue was $6,034 million, representing 90 percent of the budget in 2019.
The government approved $6.7 billion for expenditure last year.
Tax rose by 28 percent last year to $2,819 million and revenues from Customs and Excise amounted to $3,215 million, a year-on-year increase of 30 percent, according to a ministerial news release.
Kun Nhim, director-general of Customs and Excise, said that the revenue collected in 2019 was the highest in the past 20 years, taking into account the context of tax incentives offered to both investment and priority sectors.
Kong Vibol, director-general of Taxation of Ministry of Economy and Finance, said in news release that the increased tax collection was due mainly to the country’s economic growth and increasing investments.
“The achievement of tax revenues in 2019 is a reflection of the successful implementation of fiscal policy reforms and tax modernisation,” Vibol said.
Lim Heng, vice-president of the Cambodia Chamber of Commerce, said that the online-based tax payment system contributed to the transparency and efficiency of tax collection.
“We have seen tax collection has significantly and efficiently improved through payments made via partnered banks, checking [tax information] based on an online platform that we call E-payment,” Lim said. “But what we want is to create a more level playing field of tax payments. Nonetheless, so far tax collection has been conducted well.”
The increased fiscal revenues reflect the healthy investment environment in Cambodia and increasing activities of imports and exports, said Lim, adding that the purchasing power of Cambodia is strong.
Prime Minister Hun Sen said earlier this week that Cambodia earns on average $500 million per month from tax and Customs, allowing the government to use it for expenditure as well as saving some in a reserve fund.
In the budget for 2020, the Cambodian government approved about $8.23 billion for expenditure in 2020, an increase of 22.7 percent compared with 2019.
Source: https://www.khmertimeskh.com/50696032/government-income-beats-2019-target