Cambodia Targets Stronger Tax Collection, Fiscal Discipline in 2027–2029 Budget Plan

PHNOM PENH, May 25, 2026 (KPT) — Cambodia plans to strengthen tax collection, improve fiscal discipline and modernize public financial management under its new 2027–2029 budget framework, the Ministry of Economy and Finance said Monday.

The Ministry said the government will maintain a “neutral fiscal stance” to preserve sustainability while avoiding the use of state savings reserves. Strengthening domestic revenue remains critical to funding infrastructure, public services and long‑term stability, they added.

The strategy includes reforms to modernize tax administration, expand digital systems, improve customs operations and reduce evasion. Authorities said stronger revenue performance in recent years has enabled investment in roads, bridges, schools and hospitals nationwide.

The General Department of Taxation collected more than US$1.78 billion in the first four months of 2026, a 46.75 percent increase from the same period last year. For 2026, the authority aims to collect about US$3.8 billion.

Deputy Prime Minister and Finance Minister Aun Pornmoniroth said tax revenue has become a key source of funding for infrastructure and reforms, while supporting the private sector as the “engine of growth.” Prime Minister Hun Manet called for greater trust and cooperation between taxpayers and authorities, stressing taxes are essential for national development and fair competition.

Domestic revenue rose from 2.96 trillion riel (US$738 million) in 2012 to 14.35 trillion riel (US$3.57 billion) in 2025, making the tax department the country’s largest revenue collector. Total tax revenue reached US$6.77 billion last year.

The reforms are intended to create a more predictable, investor‑friendly environment while strengthening public trust in state institutions.