15 Nov 2017
CAMBODIA: Mandatory Export Tax Set to be Phased Out in 2018
The country’s export tax is set to be abolished in 2018, according to an early draft of the government’s 2018 budget proposals. Officially referred to as the Export Management Fee (EMF) and overseen by the Ministry of Commerce, the tax is currently payable on a wide range of export goods, including garments, footwear and bicycles.
Although Cambodia may lose up to US$20 million per year in revenue terms following the phasing out of the EMF, the move is seen as necessary if Cambodia’s export-oriented businesses are to flourish. Overall, the repeal of export tax is intended to boost the local manufacturing sector, while also heightening the expected level of inward investment. Nonetheless, this measure will go some way towards placating senior figures in the country’s textiles and garment sector, who are currently at odds with government plans to raise the minimum statutory wage as of 1 January 2018.