Tax revenue ‘exceeds’ expectations
Tax revenue ‘exceeds’ expectations
The government has amassed over $3 billion in revenue from the General Department of Taxation (GDT) as of October 30, which represents 85.7% of the 2023 Law on Financial Management despite the deteriorating global economic landscape affecting the region.
Tax revenue for the first nine months of 2023 stood at $2.806 billion, or 78.57% of the 2023 Law on Financial Management, according to a GDT press release.
GDT director-general Kong Vibol said these figures underline the commitment to bolstering its e-Tax Service for taxpayers, simplifying access to its systems and programmes.
“We will persistently refine and advocate the Standard Operating Procedures [SOPs] for all tax entities to stay aligned with prevailing laws, regulations and business process advancements via information technology systems,” he added.
Minister of Economy and Finance Aun Pornmoniroth lauded tax officials for their diligence and exceptional management of revenues.
He voiced support for a forward-looking approach to digitise tax administration, aiming to advance the GDT into a ‘tax administration 3.0’ model, consistent with global tax administration trends.
“The GDT remains focused on refining taxpayer services, prioritising work and addressing the concerns of the private sector and the wider public,” he stated.
Davide Furceri, the International Monetary Fund’s (IMF) mission chief to Cambodia, announced a revision to the country’s economic growth projection for this year on October 31, downgrading it to 5.3% from the 5.8% predicted in April.
The adjustment, he said, comes in the wake of challenges from external markets, notably a deceleration in key export partners including the US, EU and China, coupled with a sluggish real estate sector.
He said that despite this, the economy witnessed growth in 2022, increasing to 5.2% from 3% in the prior year, propelled by robust manufacturing and a resurgence in the services sector.
Currently, the IMF anticipates an economic growth rate of 6.0% for 2024.
“The ongoing recovery in tourism and the surging exports of solar panels and electrical components are the main growth drivers,” he stated.
He noted, however, that the garment export industry remains tepid, displaying only marginal recovery signs recently, with a stagnant construction sector further impeding growth.
“After declining from last June’s peak, inflation rebounded to 3.8% in September, spurred by rising food and fuel prices,” he added.
He predicted that inflation would average 2.3% in 2023 and approach its long-term average of 3% by 2024, barring unforeseen commodity price shocks.
