Up to 211.2 billion riel or $52.2 million of e-commerce tax revenue was collected by the General Department of Taxation (GDT) in the first eight months of 2023 amid rapid online business growth around the world, including Cambodia.
According to the GDT, the collection for August alone amounted to 24.5 billion riel or ($6.04 million). Overall tax revenue, including e-commerce tax, stood at 10.3 trillion riel or $2.6 billion, between January and August 2023, which is 71.4 per cent of the Law on Financial Management for 2023.
In a meeting at the GDT on September 14, director-general Kong Vibols said they are committed to effectively implement government policies as well as reforms and modernisation of the tax administration.
He said tax reform and modernisation since 2012 have strengthened the tax system, with good governance being the backbone of reform.
“[This includes] leaders and tax officials at all levels working together to carry out the work with a proactive spirit. And, to ensure the sustainability of tax revenue while participating in reform work and modernisation of the fiscal administration,” Vibol added.
On September 19, Hong Vanak, an economics researcher at the Royal Academy of Cambodia, told The Post that advances in technology, which allow people to search for goods online, time constraints and traffic problems have pushed e-commerce growth, making it a popular shopping medium for Cambodians.
He added that the increase in tax collection from e-commerce transactions confirms that the online market in Cambodia is becoming more active, especially among middle-aged people.
“This tax revenue would increase in the future as e-commerce transactions become more active every day,” Vanak said, adding that strengthening of law enforcement would also result in higher e-commerce tax collection.
Modernisation of technology is further improving the market for agricultural products because by using this system, producers and buyers can send images of their products directly to the other party quickly and easily, he noted. “Modern technology has become an important part of Cambodia’s economic growth now.”
The Cambodian economy is forecast to grow by 5.6 per cent in 2023, which is an expansion from 5.2 per cent growth in 2022.