Phnom Penh: The Ministry of Economy and Finance’s General Department of Taxation, GDT, has collected 10.6% less in taxes over the first eight months of the year when compared to the same period in 2020, but still, up to $1.9 billion in taxes have been collected since January.
Cambodia Chamber of Commerce vice-president, Lim Heng, believes the decrease comes from two main factors: less businesses activities due to the lockdown implemented to contain the spread of Covid-19 and the tax breaks given by the government to support sectors hit by the pandemic.
FASMEC – the Federation of Associations for Small and Medium Enterprises of Cambodia – President, Te Taingpor, believes that business is gradually getting back on track. Only in August, for example, $192.3 million were collected in taxes, 12.71% more than August 2020. Another positive aspect is the approval of a Free Trade Agreement between Cambodia and China, the CCFTA. Taingpor believes the CCFTA will expand Cambodia’s international trade and he hopes it will start taking place early in October.