The latest data for Cambodia, suggests the Cambodian government expects to earn tax and customs income of at least $5 billion by the end of 2021, while growth is forecast to be 2.5 per cent.
Cambodian Government Revenue 2021
The Cambodian government tax revenue collection from January-July 2021 totalled USD $3.061 billion, reported the Khmer Times and Phnom Penh Post. The average monthly tax revenue collection is approximately $400 million per month.
- Tax Revenue Collection: $1.716 billion (Jan-July)
- Customs income: $1.345 billion (Jan-July)
The government will allocate part of the proceeds to fund the COVID-19 vaccine rollout. Other investments would be development projects, such as road and electricity infrastructure.
The government has increased the ease of paying taxes through digitising payments which also adds better accountability and automated data.
Vehicle owners, for example, can now pay road tax via mobile devices through the GDT Taxpayer App, confirmed the Ministry of Economy and Finance’s General Department of Taxation (GDT). “The GDT is confident that vehicle owners and the wider community of taxpayers will benefit greatly from this app, saving time and paying taxes in an easy manner while being able to monitor the tax status on all vehicles or other means of conveyance in an instant”.
Growth Forecast 2021
Earlier in 2021, the financial outlook for Cambodia suggested growth of around 4 per cent according to the Asian Development Bank’s (ADB), ASEAN+3 Macroeconomic Research Office (AMRO), and the World Bank.
On August 1st 2021, it was reported that Prime Minister Samdech Techo Hun Sen had lowered the kingdom’s economic growth forecast to 2.5 per cent for 2021, due to the ongoing impact of COVID-19 and the Delta variant.
The Prime Minister said growth relied on agriculture as other sectors, particularly tourism, were hit hardest by the pandemic.
Cambodia Inflation 2021
The 2021 inflation rate for Cambodia in the first half of the year is 2.5 per cent, confirmed the National Bank of Cambodia (NBC). The NBC projected a 2.5-2.8 per cent inflation rate in the second half of 2021, with the average inflation for 2021 reaching 2.6 per cent.
- Food: Increased by 2.9 per cent between the first halves of 2020 and 2021.
- Petroleum-related goods and services: Increased 5.3 per cent the first halves of 2020 and 2021.
FDI 2021: Cambodia
The Cambodian Ministry of Economy and Finance previously reported that the Foreign Direct Investment (FDI) fell by 50 per cent between Jan-May 2021 compared to the same period in 2020.
Tourism 2021: Cambodia
Meanwhile, the international tourist numbers have plummeted to lows in 2021, with visitors heading to Angkor Archaeological Park down nearly 99 per cent in the first six months of 2021.