Economy

Government Collects $490 Million Taxes in June

Tax revenue is starting to show signs of rebounding after the economy was hit by Covid-19. However, it still lags behind pre-pandemic levels.
People buy vegetables at a market in Phnom Penh. Kiripost/Sam
People buy vegetables at a market in Phnom Penh. Kiripost/Sam

The government raked in $490 million in taxes and customs in June as it starts to see recovery from the impact of Covid-19, Prime Minister Hun Sen said on Friday.

However, Hun Sen said the increase has not yet rebounded to pre-pandemic levels, in which the revenue was between $500 to $700 million monthly.

During the peak of the pandemic, revenue declined to below $400 million a month, the Cambodian premier added.

Hun Sen, who was speaking at a ceremony to release fish in Banteay Meanchey province, also urged people to drive electric cars to cut costs from the global rise in fuel prices.

“Rising oil prices are a global hardship, something that stemmed from the Russia-Ukraine war crisis, causing fuel and LNG prices to go up,” Hun Sen said.

He said the LNG price had risen by 35.8 percent. “Now, we use LNG to cook food. In a moment, people in Europe will cut down wood to cook food, replacing LNG,” he said, adding that the EU has begun to use coal.

“People should make changes from now on by using battery cars or Prius, which uses fuel and battery,” he said.

He added the change will drive down personal costs and cut down on traffic accidents because Prius cannot go very fast.

Hun Sen also urged people to use Tesla and said gas stations should also install charging stations.

He added that Cambodia is not yet facing fuel shortages like in Sri Lanka.

Cambodia’s economy is expected to continue its recovery process. However, it faces several risks. The prolongation of the Ukraine-Russia war may further damage the global economy, particularly across the European Union, which is one of the country’s main export destinations.

“As Cambodia imports several food items and oil from abroad, inflation may be much higher than the previous year, which would put pressure on households’ purchasing power,” according to a Financial Stability Review 2021.

China’s recent economic slowdown may also affect Cambodia’s economic recovery, which heavily relies on Chinese investments and imported materials, the report added.