世界银行-柬埔寨经济更新_2025年6月_应对不确定性_为柬埔寨的未来增加收入（英）-2025_49页_10mb

Cambodia Economic Update June 2025 - Special Focus: Strengthening Revenues for Cambodia’s Future

Navigating Uncertainty
Strengthening Revenues for Cambodia’s Future

Overview

Cambodia's economy is characterized by uneven performance across sectors. While exports, particularly in garments and tourism, remain strong, domestic investment faces significant challenges due to the ongoing slump in the property sector and a tightening credit cycle. Inflation has moderated slightly but remains above pre-pandemic levels.

The government has embarked on fiscal consolidation efforts, which have contributed to improved revenue collection, primarily driven by higher value-added tax (VAT) and excise duties. However, revenue mobilization remains a key challenge, with significant opportunities to strengthen the tax system to support broader development goals.

Revenue Context

• Tax-to-GDP Ratio: Cambodia's tax-to-GDP ratio decreased during the pandemic but recovered partially in 2024, though it remains below pre-COVID levels and regional peers like Malaysia, Thailand, and Vietnam.
• Composition: The tax system relies heavily on indirect taxes (VAT and excise duties) which account for about 85% of total tax revenue but face challenges related to informality and compliance burdens.
• VAT: Cambodia's VAT rate (10%) is among the lowest in the region, but its collection efficiency efficiency (0.41) needs improvement due to informal activities, complex refund processes, and inadequate taxpayer protections.
• CIT: Corporate income tax (CIT) collections increased before the pandemic but saw volatility post-pandemic due to softer corporate profits. Rates are broadly competitive.

Impact of the Cost of Tax Compliance on the Business Climate

• Top Obstacles: Most firms cite tax rates and tax administration as the biggest barriers to doing business. Informal payments to officials are also significantly reported.
• Compliance Burden: Firms, especially smaller and less sophisticated ones & informal operators, report high compliance costs in terms of time & money. Firms away from Phnom Penh & smaller entities are most affected.
• Paperwork & Uncertainty: Complex oversight requirements & legal ambiguity regarding tax liability create uncertainty & inflate compliance costs. Difficulty interpreting regulations adds contractual, record-keeping & reporting expenses.
• Informality: The large informal sector tax base limits the effectiveness of direct tax collection.

Equity

• Progressive System: Cambodia's tax system overall reduces inequality, as seen in the narrowing of the Gini index after accounting for direct transfers & direct taxes. Indirect taxes disproportionately impact poorer households, but direct transfers offset this effect.
• Economic Roles: Excise taxes on tobacco & alcohol result in regressive impacts, contributing significantly to poverty incidence. Similar trends are observed with sugar-sweetened beverages (SSBs).

Policy Recommendations

• Enhanced Revenue Mobilization:
  • VAT: Eliminate exemptions on basic food items slightly & increase the standard rate to raise substantial revenue quickly. Phase adjustments carefully with targeted social spending.
  • CIT: Centralize decision-making for tax concessions & explore international standards for multinational taxation. Conduct reviews of tax incentive effectiveness.
  • Excise Tax: Rationalize the excise structure for alcohol & tobacco, aligning with health objectives & international benchmarks. Explore mechanisms to broaden the domestic excise base.
• Improved Tax Administration:
  • VAT Refunds: Modernize the VAT refund system, simplify procedures, & ensure timely & transparent processing. Establish clear audit quality assurance mechanisms & safe dispute resolution forums.
  • Compliance Management: Permit flexible accounting years & raise late payment interest rates to discourage delayed payments. Digitize core services to reduce effort & formality requirements.
  • Informality Strategy: Develop presumptive tax regimes for micro-enterprises & enhance outreach for formalization.
• Strengthen Equity & Efficiency:
  • Direct Taxation: Explore the feasibility of introducing a comprehensive personal income tax (PIT) to broaden the base & improve fairness & revenue potential whenever feasible.
  • Excise Tax Design: Reform alcohol & tobacco taxation, ensuring rates reflect negative health impacts & promote abatement. Increase excise rates on higher alcohol content products.
  • Policies in Dispute Resolution: Enhance taxpayer rights & safeguards in legislation, particularly during audits & dispute resolution, to improve fairness perception.
• Equity Improvements:
  • Carefully consider targetted social transfers to mitigate potential regressive effects of revenue raising measures or widen income inequality during consolidation. Prioritize investments in human capital (health & education) neglected by middle-income peers, directly addressing social needs & enabling more inclusive growth.

Conclusion

Tax system reforms are crucial for mobilizing resources to meet development aspirations. Strengthening revenue mobilization is essential to achieving Cambodia's broader development goals, particularly investments in social sectors like health and education. A modern, efficient, fair, and transparent tax system underpins macroeconomic stability and fosters a more inclusive economy.