Government revenue collection, through the General Department of Customs and Excise (GDCE), the General Department of Taxation (GDT), and non-tax revenues, in the first half of 2025 showed consistent positive growth, with an overall increase of 14%.
However, due to several issues anticipated in the second half of the year, annual revenue in 2025 may fall short of the targets set in the 2025 National Budget Law, according to the Ministry of Economy and Finance.
The “Results of the First-Half Budget Implementation and Evaluation of the Financial Law Implementation for the 2025 National Budget Law” report, published last week, revealed that revenue collected through the National Treasury (including customs, tax, and non-tax revenues) reached a total of 15,200,316 million riel (approximately $3.8 billion), equivalent to 53.4% of the budget law’s annual target. This amount represented a 14% increase compared to the same period in 2024.
Customs revenue reached $1,487.23 million (5,948,913 million riel), equal to 58.6% of the financial law target. This is 16.5 percentage points higher than the same period in 2024, which reached only 42.1%.
Notably, the automobile market has seen a recovery but remains fragile due to dependence on regional and global economic stability, investment flows and other factors. Domestic production and the implementation of free trade agreements have also affected the customs and excise department’s revenue performance. Overall, customs and excise revenue in the first half of 2025 is on an upward trend, and projections suggest it could reach 111.5% of the 2025 budget law target by year-end.
Tax revenue (at the national level) reached $1,796.5 million (7,186,061 million riel), equivalent to 51.1% of the financial law target. This is 3.2 percentage points higher than the same period in 2024, which reached 47.9%. In monetary terms, this represents a 2.5% increase year-over-year.
This growth mainly stems from: Income tax: 51% of total tax revenue, Salary tax: 12%, Value-added tax (VAT): 27%, and Special tax on goods and services: 9%.
Overall, tax revenue collection in the first half of 2025 exceeded that of the same period in 2024, thanks to strong performance in income tax and VAT collections.
In addition to tax revenue (customs and tax), non-tax revenue and other sources (domestic and various budget support funds) totaled approximately $516 million. Non-tax revenue is made up of three main components: Revenue from state assets, other non-tax revenue outside of state property, and mandatory contributions from casinos and lotteries.
In the first half of 2025, non-tax revenues performed well, and estimates suggest that by the end of 2025, they may reach around 100.1% of the 2025 financial law target.
Despite the encouraging results, the report notes that overall national revenue in 2025 may still fall short of the target outlined in the National Budget Law.
“Based on the first-half results and the revenue trends expected in the second half, it can be concluded that both national and sub-national revenue collection in 2025 may fall short of the National Budget Law by approximately 3.3%,” it warned.
According to the report, revenue collection in the second half of 2025 is expected to be significantly affected, particularly in tax revenue sources.
“Based on projections to the end of the year, national-level tax revenue may only reach approximately 86.5% of the 2025 financial law target. This is due to the continued decline in income tax, VAT and special tax collections, while revenue from sectors such as construction and real estate is expected to remain sluggish. These challenges are compounded by the ongoing implementation of various fiscal incentive policies,” it added.
