To ease the cost of living for the public, the Cambodian government has announced that customs duty rates and special tax rates on specific goods will be reduced, ranging from 35% down to 0%. The new duties will take effect in early 2026.
They were detailed in sub-decree No. 255, dated December 19, which explained that the reductions were based on a proposal from the Minister of Economy and Finance.
The General Department of Customs and Excise (GDCE) listed the six categories.
- Duties will fall from 15% and 7% to 0% on live poultry, computers and antenna equipment and accessories, as well as laboratory equipment and spare parts.
- They will also fall from 15% to 7% on fiberglass insulation, blenders and fruit/vegetable juice extractors, electric rice cookers, stone polishing machines, sanitary cotton and diapers.
- They will fall from 35% to 7% on anti-corrosion paint used on ship hulls.
- They will fall from 35% to 15% on electric ovens used for baking or grilling, and limousine-type passenger vehicles.
- They will fall from 10% to 0% on electric vehicle motors, vacuum cleaners and audio equipment.
- They will fall from 10% to 5% on electric vehicle batteries.
The GDCE confirmed that the newly adjusted tax and duty rates will come into effect starting January 1, 2026.
Economist Hong Vanak of the Royal Academy of Cambodia told The Post that reducing import duties on some goods could cause the government to lose some national revenue, but would also lower the prices of imported goods. He explained that when prices fall, consumer demand increases, which in turn helps improve the overall circulation of the national economy.
“Tax reductions help ease part of the financial burden on the public. The goods on which the government has reduced import duties are truly essential and in high demand domestically,” he said.
He noted that although customs revenue may decline, when domestic consumption increases, the state can generate higher revenue from other taxes.
According to the GDCE, in 2024, it collected total tax revenue of 10,542.2 billion riel (approximately $2.59 billion), an increase of 13.8% compared to 2023.
In terms of revenue composition, value-added tax accounted for about 41.3%, special taxes 32.1%, customs duties 18%, additional taxes on petroleum products 4.4%, and export duties and other fees 4.2%.
Mixed goods accounted for about 34.7%, vehicles and machinery 31.1%, fuel and energy 26.9%, and construction materials and other fees 7.3%, according to the GDCE.
