Logo of Phnom Penh Post newspaper Phnom Penh Post - Improved tax enforcement drives revenue above forecasts

Improved tax enforcement drives revenue above forecasts

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Vehicles travel along Kampuchea Krom Boulevard in Phnom Penh. Hong Menea

Improved tax enforcement drives revenue above forecasts

The General Department of Taxation (GDT) has announced the commencement of tax collection for means of transportation and all vehicle types for 2023. The collection period will run from June 1 to November 30.

The GDT noted that private vehicles bearing the number plates of the Royal Cambodian Armed Forces (RCAF) and National Police cannot pay taxes unless they fulfil their tax and import duty obligations in accordance with the law.

In a May 30 notice, the GDT, which operates under the Ministry of Economy and Finance, said the owners of new vehicles seeking registration for the first time must submit two tax returns, along with documents such as vehicle identification card, owner’s national identity card and vehicle technical inspection certificates for trucks and passenger cars.

For vehicles previously registered in the GDT’s tax management system but lacking a tax identification card, owners can pay the tax without completing a tax return for means of transportation and all vehicle types. By presenting or attaching supporting documents like vehicle identification cards, receipts for transportation and vehicle taxes, or previous tax return certifications, vehicle owners can have the data verified by tax officials or partner commercial banks through the GDT’s tax management system.

Additionally, vehicles belonging to foreign embassies or consulates, international organisations, or governmental technical cooperation agencies must obtain a tax return certification from the GDT.

The notice further stated that ministries, institutions or units seeking a tax certificate for means of transportation and all vehicle types must include a vehicle inventory registered with the finance ministry’s General Department of State Property and Non-Tax Revenue.

Pech Pisey, the executive director of Transparency International (TI) Cambodia, said on May 31 that the state revenue collection process through various taxes has made positive strides. This progress enables the government to increase domestic revenue through the payment of all taxes, including transportation and vehicle taxes. Pisey emphasised the importance of enforcing the law equally and consistently.

Regarding private vehicles using RCAF and police number plates, the GDT’s announcement confirmed that taxes cannot be paid for all vehicle types in 2023. These vehicle owners can settle their transportation and vehicle taxes only if they meet their tax and import duty obligations according to the customs and vehicle registration laws and regulations of the transport ministry.

Failure to pay taxes on time will result in penalties under the prevailing tax laws.

The GDT will collaborate with relevant authorities, particularly traffic police and Military Police, to monitor tax collection enforcement on the streets after the November 30 deadline.

According to the GDT, tax revenue from means of transportation and all vehicle types in 2022 exceeded $100 million, surpassing the 123 per cent target from 2021. It attributes this increase to improved measures, including the utilisation of information technology, particularly the GDT Taxpayer App, for tax payments.


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