Cambodia has scrapped import taxes on electric vehicles (EV) and related equipment from 1 April, citing pressure from rising fuel prices, as the government accelerates efforts to reduce reliance on fossil fuels and expand clean energy use.
The policy shift comes amid a sharp surge in global oil prices driven by the war in the Middle East, which has disrupted supply routes and tightened markets. Brent crude rose more than 50 per cent in March, while supply disruptions linked to the Strait of Hormuz – a key route for about 20 per cent of global oil flows – have pushed prices above US$100 per barrel and heightened volatility.
The International Energy Agency has warned the crisis represents one of the largest supply disruptions in oil market history, with flows through the Gulf severely curtailed and global supply projected to drop significantly.
Against this backdrop, the General Department of Customs and Excise of Cambodia (GDCE) said on 26 March that it will reduce import duties to zero per cent on a wide range of EVs, parts and electrical goods, Khmer Times reported.
The measures include cutting tariffs from seven per cent to zero per cent on nine categories of goods, including EVs, electric rice cookers and solar lamps. Import taxes of 15 per cent have also been eliminated for electric vehicle motors, solar power systems, lithium batteries and energy storage devices such as power banks.
A further 179 tariff lines covering hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), electric stoves and EV passenger and freight vehicles have seen duties reduced from 15 per cent to zero per cent. Taxes on some PHEV family cars were lowered from 35 per cent to seven per cent, while duties on certain EV family cars and electrical appliances were cut from 35 per cent to zero per cent.
Export taxes on bauxite, an alumnium ore, were also reduced from 25 per cent to 10 per cent.
Cambodia’s EV market remains small but it is growing. Of the 8.3 million vehicles registered with the Ministry of Public Works and Transport as of February 2026, only 14,534 were electric, according to ministry spokesperson Phan Rim.
“The number of EVs will continue to increase onward,” Rim said.
The tax cuts form part of a broader strategy to accelerate electrification and meet climate targets. Cambodia’s updated national climate plan aims to reduce carbon emissions by 41.7 per cent by 2030, while its long-term carbon neutrality strategy targets electric vehicles making up 40 per cent of cars and a majority of motorcycles and urban buses by 2050.
Authorities have introduced a series of supporting measures in recent years, including cutting special duties on EVs, revising road traffic laws to allow EV registration and promoting the rollout of charging infrastructure nationwide. The government has also encouraged private investment in charging networks and engaged with companies such as Chinese EV maker BYD on infrastructure expansion.
Development partners including the United Nations Development Programme, Economic and Social Commission for Asia and the Pacific, as well as the Global Green Growth Institute are supporting policy development, feasibility studies and pilot projects, including plans for electric bus deployment.
Officials say Cambodia has structural advantages for EV adoption, including a young and highly motorised population, rising fuel costs and an electricity mix where a large share is generated from renewable sources such as hydropower and solar.
However, challenges remain, including high upfront costs, limited charging infrastructure and concerns over battery reliability and charging times. New EVs can cost around US$29,000 in Cambodia, compared with about US$16,000 for new conventional vehicles and US$6,500 for used cars, while charging stations remain limited.
