Cambodia announces two-year extension of tax support for domestic cement producers

The government committed to another two years of support

Prime Minister Hun Manet announced the extension during a meeting with the Cambodia Cement Manufacturing Association. Agence Kampuchea Presse reported that the government would continue bearing part of the tax burden for domestic cement producers and maintain the incentive through December 2028.

The association told the government that its members have invested about US$1.2 billion in production capacity and can produce roughly 12 million tonnes of cement a year. It also said members supply 8–9 million tonnes to Cambodia’s domestic market annually and source around 85% of their raw materials locally. Those figures are industry-reported data cited by AKP, rather than an independent market assessment.

For practical context, see Cambodia economy and finance. This development also connects with Cambodia announces Khmer products exhibition for Nov 6–8.

Prakas No. 1000 still sets the published rules only through 2026

The General Department of Taxation lists Prakas No. 1000 MEF.Prk.GDT, dated 31 December 2024, as the measure governing the current relief. It treats the 5% Specific Tax on domestically produced cement as a state-borne tax from 1 January 2025 through 31 December 2026.

The measure also attaches compliance conditions. Producers must file tax returns through the e-Filing system, keep proper accounting records, meet other tax, royalty and social or environmental obligations, support training and knowledge transfer for local staff, and submit annual information to the Ministry of Economy and Finance.

As of this article’s preparation, a separate publicly indexed GDT instrument setting out the 2027–2028 terms could not be confirmed. The June announcement therefore establishes the government’s decision to continue support, but it does not by itself prove that every condition in Prakas No. 1000 will remain identical after 2026.

Builders should separate producer tax relief from cement prices

For developers and contractors, the announcement reduces uncertainty over whether government support for domestic cement production is intended to stop at the end of 2026. It does not guarantee cheaper cement. Producer-level tax relief is only one input into pricing, alongside energy, raw materials, transport, demand and each supplier’s commercial decisions.

Cement manufacturers and businesses relying on the relief should base 2027 tax treatment on the new implementing instrument or a formal clarification from the tax authorities once available. Prakas No. 1000 is useful for understanding the current structure, but it is not automatic proof of the rules for the extended period.