Cambodia Customs Revenue Surpasses First-Half Target Amid Structural Shifts

The General Department of Customs and Excise (GDCE) collected over KHR 6.278 trillion (approximately $1.563 billion) in customs revenue from January to June 2026, meeting 51.6% of its annual revenue target and marking a 4.5% increase compared to the same period in 2025. Vehicles and machinery constituted the largest sources of revenue, accounting for 35% of the total, followed by fuel and energy products at 18.5%. Construction materials made up 7.5% of the revenue. GDCE Director-General Kun Nhem highlighted that while revenue slightly exceeded the planned target in the first half, Cambodia is experiencing changes in its customs revenue structure. Notably, revenue from fuel and gas has declined following the government's implementation of tax and duty relief measures from March 20, aimed at mitigating the impact of the global surge in fuel prices. "The increase in revenue from miscellaneous goods is the result of implementing stringent measures to prevent and suppress tax evasion, as well as strengthening governance within the GDCE," Kun Nhem stated. Beyond revenue collection, he emphasized significant progress in trade facilitation, including expanding the automated customs system, simplifying procedures for express delivery and SMEs, increasing Authorized Economic Operators (AEOs), enhancing cooperation with foreign customs administrations and the private sector, and reducing customs clearance costs. The GDCE also successfully hosted the 35th ASEAN Customs Directors-General Meeting and related ASEAN technical working group meetings. Minister of Economy and Finance Aun Pornmoniroth praised the GDCE's performance, acknowledging the challenges such as tax and duty relief on imported fuel and gas, reduced tax rates on electric vehicles and solar energy equipment, weaker domestic consumer demand, and increased local production replacing imports. He urged GDCE officials to continue implementing all customs-related measures, particularly those aimed at preventing tax evasion and strengthening governance, to improve revenue collection and the business and investment environment. In 2025, the GDCE collected KHR 12.761 trillion (approximately $3.181 billion) in customs revenue, equivalent to 124.5% of the 2024 annual target. This revenue level was comparable to that recorded in 2019, prior to the economic disruptions caused by the COVID-19 pandemic, geopolitical conflicts, and ongoing global conflicts.