Cambodia imposes VAT on cigarettes, Illustrative image (Source: AFP/VNA)

Phnom Penh - The Cambodian Government has implemented a value-added tax (VAT) on cigarettes to combat the health risks associated with smoking and tobacco products.

The decision became effective August 1, with companies importing and distributing cigarettes in Cambodia having to apply a flat rate of 10 per cent VAT on all cigarette supplies, reported the local Khmer Times.

Enterprises importing cigarettes for export can pay a one-off value-added fee at the point of importation. This measure aims to support the country’s export industry while ensuring appropriate taxes are imposed on tobacco products.

The VAT on cigarettes can potentially reduce smoking rates and prevent premature deaths. This move aligns with global efforts to curb smoking and improve public health outcomes.