Development, Trade and Foreign Affairs
The Medium-Term Revenue Mobilized Strategy 2014-2018 (RMS 2014-2018) [Revenue Mobilized Strategy_KHMER Version] is prepared for defining the vision, goals and objectives, approaches, administrative reform measures, improvement in tax and non-tax policies, for strengthening the monitoring and evaluation system, and for responding to Cambodia’s economic situation at present and in the coming medium term. The vision focuses on efficient and effective domestic revenue collection in order to meet the demand for sustainable socio-economic development. The RMS 2014-2018 aims at strengthening tax and non-tax administration and promoting the culture of tax compliance to strengthen effective revenue collection, to respond to the need of an expanding market economy, the increasing number of taxpayers and sophistication of business as well as to facilitate the effective management in providing tax paying services.
The RMS 2014-2018 has set the following goals: (1) increase the total current revenue by at least 0.5 percentage point in addition to the ratio of current revenue to GDP annually, from 15.18% in 2014 to 17.35% in 2018, (2) respond to development needs to maintain high economic growth and achieve national development goals in line with the RS – III and to prepare to be a high middle-income country in the near future, (3) expand fiscal space to strengthen macroeconomic and financial stability, manage debt sustainably and alleviate reliance on external financing and (4) increase budget for urgent cases, force majeure and other crises or immediate expenditure of the RGC in the future.
The RMS 2014-2018 has four main principles: (1) collection of existing revenue to its full potential, (2) no creation of new tax, (3) no increase in tax rate and VAT, except to offset any revenue loss and for health protection and/or environmental protection and (4) ensuring of simplicity, equity and justice through efficient, transparent and accountable revenue management and collection. Based on the principles above, the RMS 2014-2018 will focus on four reforms: (1) promotion of tax culture, (2) improvement of tax paying services, (3) improvement of tax and non-tax administration and (4) improvement of tax and non-tax governance.