Tax collection rises 22% to $512 million in two months

Tax collection rises 22% to $512 million in two months

The General Department of Taxation collected KHR 2,074.66 billion (around $512 million) in taxes for the first two months of 2022, increasing 22.69 percent compared to the same period in the previous year.

In February 2022, revenue from five main types of taxes continued to increase significantly compared to February 2021.

The income tax registered an increase of 14.18 percent, or KHR 23.61 billion, to KHR 190.15 billion in two months. The value-added tax rose to KHR 252.78 billion (an increase of KHR 13.23 billion riels or 5.52 percent), special tax up at KHR 105.67 billion (an increase of KHR 15.50 billion or 17.19 percent), payroll tax was at KHR 98.42 billion (an increase of KHR 18.51 billion or 23.17 percent), and duty on real estate transfer at 63.23 billion riels (an increase of KHR 9.18 billion or 16.98 percent).

Kong Vibol, Director General of the General Department of Taxation, reminded the companies about tax compliance. He said, “A small number of enterprises did not register properly under the Tax Evasion Scheme. Fraudulent contracts and bills aimed at reducing taxes may be the target of criminal investigations and in some cases, money laundering.”

Hong Vannak, an economic researcher at the Royal Academy of Cambodia told Khmer Times that the tax sector plays a vital role in raising the national budget for current expenditures. “As we have seen, tax collection has been increasing year by year. During the Covid-19 crisis, there was a slight slowdown in tax collection in 2020. But this year, the tax collection is increasing considerably.”

He said that the increase in tax collection is due to the reforms in the tax sector, especially in real estate, annual tax, stamp duty and tax collection on various dealers. Khmer Times