Cambodian Government Exempts Local Cement Industry from Special Tax for Two Years

• 16 January 2025
• Local News
• 157 Views

The Government of Cambodia has announced a significant measure to support the local cement industry by waiving the special tax for a period of two years. This decision, outlined in a Prakas from the Ministry of Economy and Finance dated January 14, 2025, is aimed at easing the financial burden on the industry.

During a recent statement, Minister of Economy HE Aun Porn Moniroth confirmed that the special tax, which is normally set at 5 percent on domestic cement products, will not be collected from the beginning of 2025 until the end of 2026. This exemption is intended to bolster the growth of the local cement sector.

In conjunction with this decision, the Ministry of Economy has issued guidelines for local cement enterprises, emphasizing the importance of compliance with state regulations. Key obligations include:

1. Submitting monthly and annual tax returns through the e-filing system of the General Department of Taxation.
2. Maintaining comprehensive records and accounting documents related to business operations by current tax laws.
3. Committing to the training and development of local staff to enhance human resource capabilities.
4. Meeting all other state obligations, including payment of other taxes, royalties, and contributions to environmental and social funds.
5. Preparing annual reports for the Ministry of Economy and Finance that detail costs, production capacity, raw material usage, training initiatives, and involvement in social responsibilities.

To date, investments in Cambodia’s cement industry have exceeded $1.2 billion, generating over 2,700 jobs and significantly contributing to the local economy. This was highlighted in a meeting between Prime Minister Hun Manet and Cambodian Cement Industry Association representatives on December 18, 2024. (Read more)

The government’s proactive approach underscores its commitment to fostering a thriving cement sector as part of Cambodia’s broader economic development strategy.

• Economy and Finance
• Policy and Strategy