With the goal of promoting and encouraging the use of electric vehicles (EVs) in Cambodia, the government — through the Ministry of Economy and Finance — has announced significant reductions in road tax rates for various EV categories.
In an August 21 statement, the ministry confirmed that the move aligns with the government’s commitment to boost EV adoption and advance the National Policy on Electric Vehicle Development 2024–2030. The revised tax framework covers passenger EVs, small four-door cargo vehicles (such as pickups), and light passenger vehicles that fall under Article 4 of the tax law.
New Road Tax Structure
The reduced rates are structured by the age of the EVs, with the rated power of each vehicle determining the final amount payable:
- EVs under 5 years old: 100,000 to 800,000 riel
- 5–10 year-old EVs: 80,000 to 400,000 riel
- EVs over 10 years old: 60,000 to 200,000 riel
The government expects this new structure to make EV ownership more attractive and affordable, while also supporting environmental goals and reducing dependence on fossil fuels.
Rising EV Popularity in Cambodia
According to the Ministry of Public Works and Transport, Cambodia registered a total of 2,253 EVs in 2024, marking a 620% increase compared to 2023. Popular brands on Cambodian roads include BYD, Toyota, and Tesla, alongside a sharp rise in electric tuk tuks and motorbikes, which are fast becoming popular alternatives for urban mobility.
Investment Incentives for EV Manufacturing
As part of the National Policy on EV Development 2024–2030, the government is also offering extensive tax incentives to encourage local investment in EV assembly. These include motorcycles and tuk tuks, with import tax rates — covering customs duties, special taxes, and VAT — slashed by 50 to 90%.
In addition, the tax on domestically assembled EVs has been reduced by 60 to 100%, depending on the level of localisation achieved. This policy aims to nurture a domestic EV industry, create jobs, and position Cambodia as a hub for sustainable mobility solutions in the region.
Driving Toward a Greener Future
The tax reduction is the latest in a series of steps designed to accelerate EV adoption in Cambodia. With a growing number of consumers choosing EVs and the government supporting local manufacturing, the Kingdom is setting the stage for cleaner transport, improved energy efficiency, and reduced greenhouse gas emissions.
The initiative highlights Cambodia’s determination to modernize its transportation sector, support sustainable urban development, and meet global climate commitments while making EVs more accessible to citizens and businesses alike.
Also read, BYD to Launch EV Assembly Plant in Sihanoukville, Advancing Cambodia’s Green Mobility
