Phnom Penh (FN), Mar. 4 – Cambodian Prime Minister Hun Manet stated that the Royal Government of Cambodia is considering further support for the aviation sector through various incentives, including tax reductions, to enable airlines to operate more flights to Cambodia and attract more tourists.

The premier spoke on Tuesday (Mar. 4) during Cambodia Outlook Conference 2025, held at Sokha Phnom Penh Hotel.

Samdech Thipadei underscored, “Last week, I met with the tourism sector, and yesterday, I discussed with Aun Pornmoniroth the challenges facing our aviation sector. What more can we do to support airlines? Lower their withholding tax? Reduce other taxes to help them for a while so they can operate and bring in tourists? We need to meet regularly, gather data, and find solutions.”

It should be noted that the COVID19 crisis significantly impacted the aviation sector due to the decline in flight operations. To address these challenges, the Royal Government of Cambodia has introduced a series of incentives, including tax reductions.

In September 2024, the government announced an extension of withholding tax and special tax reductions for airlines until 2027.

According to the Ministry of Economy and Finance, in an official statement, the following tax incentives have been introduced to ease the burden on airlines leasing aircraft from foreign companies and to make air travel more affordable for passengers:

1. Reduce the withholding tax rate from 14 per cent to 10 per cent for leasing aircraft from abroad to operate domestic airlines.

2. Reduce the special tax rate from 10 per cent to 5 per cent for passenger transportation services by air, applicable to both domestic and foreign airlines.

3. These tax concessions will remain in effect for three years, from 1 June 2024 to 31 May 2027.
=FRESH NEWS