Cambodia Export Industries Seek Tax Reform for Enhanced Global Competitiveness

PHNOM PENH, July 29, 2026 (KPT) – Cambodia’s textile, apparel, footwear and travel goods industries are pressing for more practical and predictable implementation of tax rules to ease business burdens and strengthen competitiveness, as the private sector deepens dialogue with tax authorities. He Enjia, Chairman of the Textile, Apparel, Footwear and Travel Goods Association in Cambodia (TAFTAC), said cooperation with the General Department of Taxation has improved in recent years, contributing to stronger compliance and a more transparent business environment. “Through constructive dialogue, practical guidance and mutual trust, we have made significant progress, although more remains to be done,” he told the TAFTAC Tax Forum 2026 on July 23. The forum brought together government officials, business leaders and tax professionals to address practical challenges rather than simply reviewing regulations. Discussions focused on tax audits, VAT refunds, obligations for Cut‑Make‑Trim and Free on Board enterprises, and the 150 percent deduction available under Cambodia’s Investment Law. He said businesses need not only to understand tax regulations but also to have clarity on how they are applied in practice. “Today’s objective is not only to understand the rules, but also how they are implemented and how businesses and the tax authority can work together to improve compliance while reducing unnecessary difficulties,” he said. TAFTAC stressed closer public‑private dialogue is vital to resolving day‑to‑day tax issues while ensuring obligations are met. The push comes as Cambodia seeks to bolster export industries amid shifting global trade conditions and rising competition for manufacturing investment.