Phnom Penh (FN), May. 2 – Cambodia Prime Minister Hun Manet announced that the Royal Government of Cambodia is pleased to welcome investments in Cambodia, including the establishment of a car assembly plant.

The premier spoke on Thursday (Apr. 5) during an inauguration of Toyota assembly plant in the Royal Group Phnom Penh Special Economic Zone.

The prime minister underlined that the reduction of customs revenue from car imports is not a concern as local investment has provided job opportunities and skills to the people of Cambodia. Additionally, when the car sales company generates income, it will contribute taxes to the state.

On the occasion, Samdech Thipadei Hun Manet added that the establishment of a car assembly plant in Cambodia will enable people to purchase cars at a lower price compared to imports, as the company has received certain incentives from the Royal Government.

Samdech Thipadei underscored, "Cars manufactured by Toyota here, without import tax, can be sold at a reasonable price. Therefore, people can afford them. That is why the General Department of Customs and Excise should not be disappointed. The tax revenue will now go to the General Department of Taxation. When cars sell well, the company earns notable income, and that goes toward taxes. So, instead of going to the General Department of Customs and Excise, the taxes will be directed to the General Department of Taxation."

It should be noted that revenue from vehicle and machinery imports serves as the primary income source for the General Department of Customs and Excise. In 2019, revenue from vehicle imports constituted 53 per cent of the total customs revenue. However, in 2020, the customs revenue decreased by 42 per cent, and in 2023, the revenue surpassed USD 220 million, equivalent to 31.1 per cent of total revenue.
=FRESH NEWS