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The country’s government will consider tax cuts for commodities used in small-medium enterprises (SMEs), manufacturing, and the agro-industry to decrease the burden on small and medium-sized enterprise owners and manufacturers, GDCE’s director-general Kun Nhim was quoted as saying by local media reports.
The General Department of Customs and Excise (GDCE) at the Cambodian ministry of economy and finance will not hike value-added tax (VAT) on imported goods even as customs income suffered losses as a result of trade pacts. The GDCE is likely to slash the VAT rate for items that support economic activities and lessen the burden of consumers.
The implementation of several trade agreements such as the Regional Comprehensive Economic Partnership (RCEP) and the Free Trade Agreement (FTA) between Cambodia and China as well as Cambodia and South Korea led to a loss in customs revenue for Cambodia, as per the GDCE. While the Cambodia-China FTA and RCEP were implemented in January 2021, the Cambodia-Korea FTA was passed in December 2022.
The trade pacts had removed nearly all tariffs On goods imported from member countries. Even with losses in customs income, the trade pacts widened the market for products made in Cambodia. The nation had amassed customs revenues totalling about $2,690 million in 2022, which surpassed 104.94 per cent of the budget plan.
Fibre2Fashion News Desk (NB)
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