IMF Calls on Cambodia to Broaden Tax Base
….Cambodian government must rise its tax revenue intake if it to stay on a sustainable path toward development, International Monetary Fund officials have said. Although Cambodia is experiencing increased growth in trade and investment, the country should broaden its tax base to create sustainable revenue collection, a mantra echoed by development partners and donor agencies/countries as well as international financial institutions. … Cambodia cureently derives the majority of its tax revenue from taxes on goods and services, while income and capital gains taxes-difficult to engineer in an overwhelming rural, cash-based economy-remain low. … The IMF estimated that, based on its experience in similar countries, Cambodia’s tax revenue to gross domestic product (GDP) ratio is about 5%-7% below its potential. …
