Sleeker tax system nets more revenue
Efforts to introduce an effective, modern taxation system appear to be paying off as government coffers swelled last year, giving the state more revenue to use for development at a time when donor aid is drying up. Tax collection revenue grew by 15 percent to $1.49 billion last year, according to newly released data from the General Authority for Taxation. The record-setting year was a testament to prudent and effective reforms aimed at enhancing Cambodia’s tax laws and improving taxpayer compliance, say financial experts. Anthony Galliano, CEO of Cambodian Investment Management, said that progressive changes to Cambodia’s tax system have given the government greater control over the national economy and reduced its reliance on foreign aid. “Whereas development planning largely relied on the expectations of benefactors, the country now is privileged to have a recurrent annuity stream to fill the national treasury, thanks largely to the GDT,” he said on January 15.
