Cambodia on track to tax tobacco more heavily
November 10, 2020
Par: communication@cnct.fr
Dernière mise à jour: November 10, 2020
Temps de lecture: 3 minutes
The United Nations Development Programme (UNDP) is calling on the government to increase the level of taxes on tobacco products, in order to align with the World Health Organization directive.[1].
The proposal, currently being considered by the national government, has two main objectives. First, a tax increase would increase tax revenues for public authorities, weakened by the pandemic. It is also part of the perspective of the fight against smoking. In this respect, it is mentioned that tax increases are the most effective lever for reducing the rate of smokers within a population.
Cambodia's tax levels are particularly low
A pack of 20 cigarettes sold at retail in Cambodia is currently taxed at 25% for domestic brands, and 31.1% for imported brands. This is well below the 75% recommended by the WHO treaty. But this level of taxation is also the second lowest in the Southeast Asia region, after Laos. Beyond the health dimension, higher taxation appears to be a necessary fiscal measure, given the economic burden that smoking represents for governments. Thus, the tax recommendations outlined are expected to result in additional revenues of $225 million over the first five years following their implementation, or $45 million per year.
A minimum of perception to reduce the attractiveness of tobacco
As mentioned in a Khmer Times article, the WHO’s proposed roadmap proposes a restructuring of Cambodia’s tobacco taxes. The plan proposes to gradually move from the current tax system, based on a tax on the value of tobacco products, to a specific tax, with fixed amounts. This restructuring is not insignificant: it would allow to set and increase the floor price for tobacco products, and thus prevent the circulation of tobacco products that are too cheap, favored primarily by young people and the working class.
Keywords: Cambodia, Taxes
[1] Renewed push to lift tobacco taxes to boost state coffers, Khmer Times, November 10, 2010, (accessed the same day)
