Tax dept rakes in $1.2B in revenue
THE General Department of Taxation (GDT) collected a whopping $1.19 billion in tax revenue during the first half of this year, an increase of 32 percent compared to the same period last year, led by a surge of value-added tax ( VAT) and profit-tax revenue.
The huge gains appear to be an indication that efforts by the Cambodian government to increase tax collection are starting to pay off, with analysts saying now is the time for the Kingdom to begin weaning itself off of foreign aid – while cautioning that such a move would require greater transparency and wiser allocation of funds.
The figures provided by the GDT yesterday showed its collections over the first six months already accounted for 69 percent of its goal for the whole year as outlined by the national budget. While the report failed to break down tax revenue by category, it noted that VAT collections soared by 45 percent and profit-tax revenue increased by 33 percent. It also showed that special tax, which includes additional fees on automobile parts, cigarettes, beer and alcohol, increased by 11 percent, with salary tax growing by 5 percent.
Hiroshi Suzuki, chief economist of the Business Research Institute for Cambodia, said that GDT’s efforts could improve civil CONTINUED