Tax cuts on EV imports set to boost electric vehicle use in Cambodia

  
PHNOM PENH, March 31, 2026 (KPT)— Cambodia has announced sweeping tax reductions on electric vehicles and related equipment, a move that private sector representatives and experts say will accelerate domestic adoption amid rising fuel prices.

Starting April 1, the government will cut or abolish import duties and export taxes on a range of electrical goods, including electric cars, motorcycles and spare parts, as well as solar energy equipment.

Lim Heng, Vice President of the Cambodia Chamber of Commerce, said the government’s earlier decision to waive fuel import taxes had already eased pressure on citizens. He added that the new measures would encourage households to shift to electric alternatives such as stoves and vehicles, while also stimulating investment in local assembly and exports.

“This exemption will drive both domestic and foreign investment in electric equipment production,” Lim Heng said.

Hong Vannak, an economist at the Royal Academy of Cambodia, called the policy a timely response to public needs and a government duty to protect citizens from rising costs. He said sustained implementation could attract investors to Cambodia’s growing EV sector.

According to the Ministry of Public Works and Transport, registrations of electric vehicles reached 14,534 by February 2026, including 3,449 motorcycles, 722 three‑wheelers and 10,363 cars.

The tax cuts are part of broader efforts to promote clean energy, reduce reliance on fossil fuels and position Cambodia as a hub for sustainable transport and green technology.