BGA Cambodia Managing Director Bora Chhay wrote an update to clients on Cambodia’s revised Revenue Mobilization Strategy.

Context

  • Prime Minister Hun Manet on January 3 introduced a Revenue Mobilization Strategy (RMS) for the seventh mandate of the government, with the vision to modernize the revenue system, enhance efficiency, broaden the tax base and optimize sustainable revenue growth to effectively meet development needs and advance Cambodia’s socio-economic structure.
  • Over the past two decades, Cambodia has achieved impressive economic growth and social stability, with GDP growth averaging over 7 percent annually prior to the Covid-19 pandemic. In 2025, according to the Ministry of Economy and Finance, the economy is expected to fully recover to pre-Covid levels, with a projected GDP growth rate of 6.3 percent, a slight improvement over 2024’s 6 percent. This positions Cambodia as a promising market, with progress toward achieving upper-middle-income status by 2029, or possibly earlier. These achievements are the result of strong and stable governance and strategic financial planning, including continuous updates to revenue mobilization strategies. 

Significance

  • The RMS mandate is built on five key approaches. First, it prioritizes sustained economic growth by fostering a business-friendly environment and promoting trade activities. Second, it maintains tax stability, avoiding new taxes or rate increases, except for excise taxes on goods and services that impact public health, society and the environment, while continuing targeted incentives and preventing overlapping tax collection mechanisms. 
  • Third, it strengthens taxpayer engagement by enhancing response mechanisms through technology and reinforcing the revenue collection code of conduct. Fourth, it focuses on strategic, high-impact revenue measures that are minimal in number, designed to generate revenue without distorting the economy, and ensuring fairness in taxation. Finally, it emphasizes private sector engagement, ensuring that fiscal policies are realistic, inclusive and aligned with the vision of a more efficient, equitable and socially responsive state revenue system.

Implications

  • The strategy aimed to enhance revenue collection through administrative modernization and a strategic mix of fiscal and non-fiscal policies, ensuring a balanced and sustained economic growth trajectory. This goal is accomplished by prioritizing accuracy, transparency and fairness for taxpayers, while targeting potential revenue sources without introducing distortions that could hinder economic activity.
  • Companies should drive sustainable growth under the RMS by prioritizing tax compliance, cost efficiency, revenue diversification and strategic policy engagement. Staying vigilant about government excise reforms from 2025 to 2028 and proactively engaging with key ministries will ensure readiness for regulatory changes. Investing in technology, exploring untapped sectors like the tech industry and adapting to market shifts will further boost competitiveness while aligning with government goals.  

We will continue to keep you updated on developments in Cambodia as they occur. If you have any comments or questions, please contact Cambodia Managing Director Bora Chhay at bchhay@bowergroupasia.com.

Best regards,

BGA Cambodia Team

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Managing Director

Bora leads BGA’s practice in Cambodia. He is a highly regarded government affairs and public policy expert who helps clients resolve business issues, navigate regulatory and legal challenges, expand operations, explore new investment opportunities and enter Cambodia’s market.  Prior to joining BGA, Bora served for five years as a fast-moving consumer goods (FMCG) corporate and regulatory affairs professional. In this role, he helped transform his company’s government relations and corporate affairs unit into a more effective business-driven group. Notwithstanding Cambodia’s difficult and highly regulated macro environment, Bora played a key role in developing and executing government relations and corporate affairs ... Read More