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The Better Cambodia > Blog > News > Cambodia’s Customs Revenue Soars by Over 20% in First Half of 2025
News

Cambodia’s Customs Revenue Soars by Over 20% in First Half of 2025

Last updated: July 15, 2025 2:19 am
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Cambodia’s Customs Revenue Soars by Over 20% in First Half of 2025
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Phnom Penh, July 15: The General Department of Customs and Excise of Cambodia (GDCE) has reported a significant surge in tax and duty collection for the first six months of 2025, with revenue reaching nearly $1.5 billion—an increase of over 20% compared to the same period last year.

Contents
  • Breakdown of Tax Collection
  • Monthly Collection Trends
  • Reforms Driving Results
  • Challenges on the Horizon
  • Economic Insight
  • Trade Growth
  • 2024 in Review

According to official figures released during a mid-year review meeting held on July 11, GDCE collected approximately $1.4782 billion (6.009 trillion riel) between January and June 2025. This represents 58.6% of the department’s total annual target of $2.5 billion (10.146 trillion riel) set under the 2025 Budget Law.

The robust performance marks an increase of $256 million (1.0421 trillion riel) or 21% compared to the first half of 2024.

Breakdown of Tax Collection

By tax category, value-added tax (VAT) contributed the largest share of revenue at 40.7%, followed by:

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  • Special tax: 35.1%
  • Customs duty: 15.8%
  • Petroleum product surcharge: 3.9%
  • Export duties and other miscellaneous fees: 4.4%

In terms of product categories:

  • Vehicles and machinery generated 36.2% of revenue
  • Mixed goods: 32.2%
  • Fuel and energy: 23.7%
  • Construction materials and other items: 7.9%

Monthly Collection Trends

In June 2025 alone, GDCE collected $252.8 million (1.0237 trillion riel). While this represented a 7.1% dip from May, it marked a 14.4% year-on-year increase from June 2024.

Reforms Driving Results

GDCE Director-General Kun Nhim credited the strong performance to the dedication of customs officials and the department’s commitment to transparency and efficiency.

“Beyond revenue collection, the department made strong progress in areas such as digitalising customs procedures, anti-smuggling operations, audits, risk management, public-private partnerships, international cooperation and institutional development,” Nhim stated.

Looking ahead, GDCE plans to:

  • Advance implementation of its 2025 action plan
  • Strengthen technological infrastructure
  • Collaborate with the private sector to facilitate trade
  • Intensify anti-smuggling efforts
  • Enhance institutional capacity
  • Align with national government strategies

Challenges on the Horizon

In February 2025, Nhim acknowledged several ongoing challenges, including the impact of free trade agreements, growth in domestic production substituting imports, increased tax incentives to attract foreign investment, the rise of electric and small-engine vehicles, and more complex smuggling techniques.

Despite these hurdles, GDCE has managed to outperform expectations.

Economic Insight

Economist Hong Vanak of the Royal Academy of Cambodia attributed the 20% revenue jump to stronger enforcement and the country’s expanding trade footprint.

He noted that the rise in customs revenue signals increased import activity—largely consisting of raw materials and components for manufacturing—underscoring Cambodia’s growing role in global supply chains.

“Customs and excise taxes are a vital source of government revenue used to develop the country through human resource development, healthcare, infrastructure and more,” Vanak said in an interview on July 14.

“With nearly 60% of the 2025 budget target already achieved, I am optimistic that customs revenue will continue growing at a strong rate this year.”

He also called on tax authorities to maintain fair and transparent practices to support a balanced investment environment.

Trade Growth

GDCE data further revealed that Cambodia’s international trade volume surged in the first half of 2025:

  • Imports: $16.2789 billion, up 18% year-on-year
  • Exports: $14.4188 billion, up 16.1% year-on-year

This trade growth supports the broader momentum in customs revenue and reflects Cambodia’s deepening integration into regional and global markets.

2024 in Review

For the full year 2024, GDCE collected $2.59 billion (10.552 trillion riel) in taxes and duties, marking a 13.8% increase over 2023. The 2025 performance so far suggests an even stronger trajectory for this fiscal year.

Also read,  Cambodia’s Agricultural Exports Grow Nearly 28% in First Half of 2025

SOURCES:The Phnom Penh Post

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