More than half a million small and medium-sized enterprises (SMEs) in Cambodia will be encouraged to register online with the government in an effort to strengthen tax collection, the industry minister said on Monday.
Speaking on the sidelines of the Industry and Handicrafts Ministry’s annual meeting, Cham Prasidh said that some 95 percent of SMEs in the country were not registered, making it difficult for the government to collect tax revenue.
“At least 80 percent have never paid taxes,” Mr. Prasidh said. “So how much will they pay when they are registered? Without tax revenue, in terms of economics, how can we pay salaries to employees, teachers, soldiers, doctors and road builders?”
He said that the ministry—which Prime Minister Hun Sen charged with registering SMEs in 2014—would teach firms how to use the online registration system.
Last month, the Ministry of Commerce launched an online business registration portal for larger firms as part of its ongoing efforts to streamline registration and curb bribery.
