Cambodia Suspends VAT on Essential Food Items to Ease Household Costs

PHNOM PENH, Cambodia (Dec. 1, 2025) — The Cambodian government will suspend value-added tax on essential food items beginning Jan. 1, 2026, in a move aimed at easing household expenses and stabilizing market prices amid rising living costs.

The Ministry of Economy and Finance said VAT will be lifted through the end of 2028 on core staples including rice, fresh meat, fish, vegetables and eggs. The exemption applies to domestic production but excludes food sold at restaurants.

Officials said the measure is expected to provide relief to families as food remains one of the largest weekly expenses nationwide.

The announcement follows the government’s earlier suspension of income tax obligations for enterprises involved in producing, supplying or exporting key agricultural products such as rice paddy, milled rice, corn, soybeans, cassava, cashew nuts, rubber, Pailin longan, mango, bananas, livestock, aquaculture and locally produced palm oil used in animal feed.

On Nov. 25, the ministry said the tax breaks were designed to boost competitiveness and stimulate growth in the agricultural sector.

To qualify, enterprises must meet four conditions: obtain a VAT certificate from the Consumer Protection Competition and Fraud Repression Directorate-General, formerly known as Camcontrol; attach supplier lists to monthly VAT declarations; maintain proper accounting records in line with legal standards; and submit monthly and annual tax returns accurately and on time.