Toyota cars await distribution after being imported through the Sihanoukville Autonomous Port (PAS). PAS
An increase in demand for raw materials to meet the needs of domestic factories/enterprises for the production of export goods led to a rise in customs revenue in 2024.
The General Department of Customs and Excise (GDCE) reported that revenue reached nearly $2.6 billion.
During its 2024 Annual Work Summary and Future Directions meeting, held on February 10, the department revealed that it collected 10,542.2 billion riel (approximately $2.59 billion), in taxes and duties, a 13.8% increase compared to 2023.
Value-added tax accounted for about 41.3%, special taxes 32.1%, customs duties 18%, additional oil product taxes 4.4% and export duties and other fees accounted for 4.2%.
Miscellaneous goods represented 34.7%, vehicles and machinery 31.1%, oil and energy 26.9%, and construction materials and other fees accounted for 7.3%, according to the GDCE.
Kun Nhem, director-general of the GDCE, described this increase as a “proud achievement”, especially in the face of numerous global economic challenges in 2024.
He explained that the challenges included the continuous expansion and deepening of free trade agreements, the growth of domestic production replacing imports, increased tax and duty exemptions to attract investment, the rising use of small-cylinder vehicles and electric vehicles and ongoing issues related to tax evasion, which have become more complex.
Minister of Economy and Finance Aun Pornmoniroth, who chaired the meeting, praised the efforts of the leadership and staff of GDCE for their hard work in achieving better revenue collection results despite challenges such as the slow global economic recovery, the ongoing Russia-Ukraine war, the Israel-Hamas conflict, issues in the Middle East and geopolitical tensions.
“I encourage the leadership and staff at all levels of the GDCE to continue their responsible efforts. The finance ministry will continue to support the GDCE in its work for even greater efficiency,” he said.
He also provided several recommendations for implementation in 2025.
They included the prevention of tax evasion, strengthening electronic trade systems, modernising institutions, drafting new customs laws, preparing action plans for the implementation of government revenue strategies, promoting trade facilitation, increasing cooperation with state institutions and the private sector, and enhancing governance.
According to the GDCE, in 2024, Cambodia imported goods worth a total of $28.54 billion, an 18% increase compared to 2023.
The imports included fuel (regular gasoline, super gasoline, diesel and lubricants), raw materials and machinery for investment projects, construction materials, vehicles and machinery and consumer goods.
Hong Vanak, an economics researcher at the Royal Academy of Cambodia, told The Post that new investments have led to an increase in the import of raw materials and equipment to meet the needs of factories producing export goods.
He expected these imports to increase in 2025, provided no major obstacles occur in the political and global economic situation. He also noted that, based on his observations, the collection of customs and tax revenue has become clearer and more effective.
“Tax revenue is an important source of funds for the government. They use it for infrastructure building, human resource development and various other activities to promote national economic growth. Tax revenue also helps the government become more independent in investing in public projects within the country,” he said.
The 2025 Budget in Brief indicated that in 2025, the Cambodian government aims to collect 31,598 billion riel (approximately $7.78 billion), with government recurrent revenue at 30,389 billion riel (tax revenue 26,418 billion riel and non-tax revenue 3,971 billion riel), and other revenue projected at 1,209 billion riel.
