[1]
(1) The General Department of Taxation Headquarters Building – modern and thoughtful
Before starting the program, (I) visited some floors in the building. I would like to express my appreciation for this great achievement, which is the result of the diligent efforts of all parties involved (including) the leaders of the relevant ministries and institutions who participated in the promotion, especially the Director-General of the General Department of Taxation itself […] Most of the products used in this building are domestic products […] not only for its beauty, for its modernity, but (also revealing) a thoughtful consideration […] This building is not only a place for work, but can be a place to hold meetings, and organize various events […] It provides a modern location available for citizens, both the public, ministries-institutions, and the private sector. We can consider it one of the model multi-purpose buildings […]
[2]
(2) Though adopting strengthening rather than expanding approach, it is still necessary to create new roles/functions
Samdech Techo Hun Sen once put forward the slogan: “If we reform, we survive, and (if) we don’t reform, we die.” This word is meaningful and correct in all circumstances. Whether state or private, all institutions need to reform. The other day, on the May-15 Veterans Day, I talked about the reform of the Ministry of National Defense, which aims to downsize and expand itself by laying off certain departments/offices and sections, and merging some offices with similar tasks […] A question was raised: “Reform (by) downsizing is good, but on what basis? Hope it is not based on removing people whom the head of the institution doesn’t like” […] let me clarify what basis (we are doing) the reform? […] Firstly, reform is not a new thing […] Secondly, (the reform) did not just start after the war. All state institutions have been implementing (reforms) since the beginning of the mandate […] Thirdly, (it is) either reducing or adjusting roles/functions or creating (new roles/functions) […] Although we have adopted an approach of strengthening rather than expanding, but in certain cases, it is necessary to create (new roles/functions) to keep up with the situation […] and fourthly, the clear basis for decision-making is not to aim at (removing/replacing) people […] We order the shoes to fit our feet, to make our feet feel comfortable putting them on […]
(3) Readjustment/downsizing is a change for better efficiency in providing services for the state
Readjustment of the structure, institutions, roles, and responsibilities of subordinate units depend on what results do we want? For example, the General Department of Taxation (that) is carrying out readjustment, not because they just wanted to, but (with the aim) of making the services (to be provided) to customers more accurately, faster, and in a more pleasant way […] meaning that (taxpayers) are satisfied with fulfilling their duties […] Once the results is scored, they organize the structure and work system […] and prepare the people later. We do not organize a department to satisfy people […] Akka Pundit Sopheacha Aun Porn Moniroth, Deputy Prime Minister, Minister of Economy and Finance said that at the Treasury there used to be a Money Counting Department […] In reforming to digital technology, we had to eliminate the Money Counting Department because there was no work. We readjust and change their duties to match the work from counting by hand to digital (machines) […] We readjust like this in every institution. We do not adjust/arrange just to (give) people (roles/functions). (And) this act of downsizing (is) not because those( officials do not work hard or the department is incompetent. But (it is) a change (that) requires better efficiency in providing services to the state […]
(4) State reform is not based on loving or hating people, but determining results of the institutions
It must depend on changing procedures, tasks, and work systems and must be adapted accordingly […] This is the actual factor that we do, related to the reform […] (Referring to) the report and the presentation, (the work that) we have done is part of the public finance reform led by the Ministry of Economy and Finance, both in tax and customs, treasury, and management. Before (putting) the FMIS App (into operation), taxes from each province took a long time to arrive at the central level, and we had no way of knowing (at which) places it went through, and (how many) days to took. As present, before nightfall, we received (the figures already) […] Such management is a process to ensure the convenience and effective management of the Royal Government, which requires the creation of a state reform, a work system structure […] I would like to reiterate that state reform or a work system structure is not based on loving or hating people, but (determining) the results of that institution as a basis to increase the 6efficiency in fulfilling the duties of the institution in line with the situation, changes in the world, technology, and changes in work efficiency and effectiveness […]
(5) Recruitment of people in line with the needs after functional analysis and institutional readjustments
After (we did) a functional analysis, each ministry and institution (have prepared) structures, and the recruitment of people has had to be in line with the needs. The General Department of Taxation last year recruited about 100 people, which was the old quota. They put in place experts who were needed to perform duties in the General Department or subordinate departments. We did this to (recruit) people effectively […] (Also in) the preparation of people (for the job), we opened another channel, (and we have) implemented it from the beginning of the mandate, allowing for recruitment of specialized contract officials. This allows the government to bring in resources from outside the state without having to (go) through the normal channel […]
Sometimes, retired officials from ministries and institutions have a high level of (expertise) […] The recruitment of additional officials can only be in numbers, but they have low (expertise) levels and need to be trained. There is no one capable yet to replace (retired officials) yet […] a moment ago, I went to see the special tax unit. They recruited officials from (the) Big 4, which are the four major accounting firms, whom the private sector has trained already. Our reforms must be flexible, setting goals, taking work results as the basis, and then adjusting the structure, creating, reducing, or eliminating (whatever is obsolete), and organizing people (to fit) the needs […] That is an arrangement in phases […]
[3]
(6) Reform is not easy but it will be the basis for moving forward
Reform is not easy. More so, reforming and implementing it effectively and sustainably is even more difficult. Doing something new is taking risk, so to speak. Even with clear planning, adjusting to a different path from the one that has been in place is risky. Success or failure, better or worse are all thoughts, but in practice, reform is not 100 percent successful all the time. However, if we do nothing, we would achieve zero. If we reform, it means we dare to take one step ahead, and it will be the basis for reform and moving forward. This is the actual situation in the work and reform of the state […]
[4]
(7) GDT and GDCE ensures the efficiency of national budget collection
(From the speech) … while Cambodia needs a more modern and smart tax administration to provide greater convenience, transparency, accountability, and predictability to taxpayers. (adlib comments) The effectiveness of the General Department of Taxation, General Department of Customs, and Excise of Cambodia not only ensures the efficiency of national budget collection, but also plays a significant role in improving the investment climate in Cambodia, reducing related service fees and investment operators, as well as ensuring fair competition, integrity, and compliance with applicable laws […] At the beginning of the mandate, in a presentation at the RGC-Private Sector Forum in November 2023, some foreign diplomats recognized our ongoing efforts, but also raised some issues related to taxation, namely unpredictability and uncertainty remaining in the implementation of our procedures. At that time, the Ministry of Economy and Finance, in general, and the General Department of Taxation, particularly, prepared SOPs to facilitate operations (to make it easier to understand) because the tax code is sometimes complicated […] For more than a year, the Special Tax Unit has worked hard, with the direct attention of His Excellency Kong Vibol […] to become a pilot program […] as the Special Tax Unit has eliminated many legal procedures.
(8) Efficient, transparent, effective taxes and customs help tax collection system
Taxpayers pay for the state to build resources, build more social infrastructure, participate in nation-building, and create equal competition. An economic definition is a transfer of resources. Those who have more resources pay more. That money goes to help those who don’t (or have less resource). For example, as an equity program, the poor go to get treatment for free, but (in reality) the state pays for it. (Where does the state get) that money from? It comes from taxes that the state collected […] The state has had to spend (for the losses) on some public services. (That cost is) offset by the revenue we collect. Therefore, organizing taxes and customs to be more efficient, transparent, and effective is how to help the tax collection system, where the customer is the taxpayer, be easy and reliable, and the tax officers are not difficult (to perform their jobs) […] I agree with HE Kong Vibol that “there is no country where tax is as easy as the tax in Cambodia,” which can be discussed and seek understanding […] However, understanding is a transitional phase. At some point, everyone, both taxpayers and tax officials, will understand the same code, the same obligations, and responsibilities, whereby there will be less misunderstandings and more equality. We want there to be understanding between officials and taxpayers, rather than between those who are catching the wrong doers and those who are doing wrong […]
(9) Make sure tax, enterprises and mediators work with) efficiency, competence, ethics, professionalism and clear responsibilities
I see that the General Department of Taxation works hard to educate taxpayers, officials, and tax agents to make them understand, […] but it is not enough. There must be participation, firstly, from companies and enterprises […] so that we can fulfill our obligations equally according to the principles of the law and the conditions of taxation. Secondly, from tax service agents, who are also important actors […] I have received information and highly appreciate the training, licensing, management, etc., but there are still some gaps […] there are some small cases, but over time, companies came to a judgment that tax officials wanted to make trouble […] finally, the General Department of Taxation call the company to meet and solve it […] international companies understand the tax code well […] I have no objection to the establishment of this tax service agency. I support […] but there may still be some limitations […]
Our officers must have clear skills and professionalism, and those who receive tax service agencies must be held accountable […] to avoid the mindset of being the ones who are wrong and the ones who catch mistakes, but come to sit down and talk clearly about obligations […] to strengthen and improve management this process we must make sure that the three actors – tax, enterprises, and mediators to (work with) efficiency, competence, ethics, professionalism and clear responsibilities. This is the remaining point. We need to strengthen further. Ultimately, it depends on people. No matter how good the system is, unless AI or digital has taken over completely, otherwise, as long as there needs to have mediation and negotiation by human, we must strengthen their ethics […]./.
