Customs revenue fuelled by reopening: GDCE chief
Customs revenue fuelled by reopening: GDCE chief
The General Department of Customs and Excise of Cambodia (GDCE) on December 15 said it collected $2.065 billion in revenue in the first 11 months of 2021, or 87 per cent of the $2.363 billion target set by the Law on Financial Management for 2021.
GDCE director-general Kun Nhim told a meeting on the same day that customs collection had seen a marked improvement after the government announced the reopening the economy early last month.
However, he conceded that the department would likely only be able to collect 97 per cent of the plan by the end of the year, or around $2.3 billion.
“We have observed an upward trend in revenue from customs at the end of 2021, after the government reopened the economy, and demand for imports has increased,” he said.
He also attributed the uptick in customs revenue to year-end discounts, which he said have driven up imports, as well as an ongoing vehicle tax break.
The GDCE has said that owners of vehicles with a model year before 2021 that were brought into Cambodia without paying import duties or other charges can reduce any levy obligations by at least 10 per cent if they pay them before the end of this year.
It has also said it would also waive related fines and other penalties until June 30, 2022.
Owners of most right-hand drive vehicles, however, must still convert them to left-hand drive by June 30, in accordance with Cambodian road traffic law, or risk having them seized, dismantled or destroyed.
Prime Minister Hun Sen on December 15 called on vehicle owners who have yet to pay any applicable import taxes or related fees due to do so before December 31, in order to benefit from the reduction of at least 10 per cent.
“After December 31, 2021, the full tax bill will be paid – there will be no more 10 per cent tax incentives,” he said.
Taking exception to the relatively high proportion of right-hand drive vehicles on the road, as well as those with unpaid tax, Hun Sen urged owners to have the conversion done and pay their dues.
Last year, the GDCE collected $2.4196 billion in revenue, down $795.5 million or 24.8 per cent compared to 2019, as Covid-19 ravaged the national, regional and global economies. This was equivalent to 83.5 per cent of the 2020 plan.
