Cambodian tax reform efforts should prioritize fostering an environment where informal businesses can *become* formal, rather than demanding immediate tax compliance. This sentiment was shared by business leaders and tax officials during a June 25th discussion, with economic formalisation identified as vital. Broadening the tax base, attracting investment, and ensuring sustained economic growth depend on this shift. Experts believe focusing on conditions conducive to expansion for existing formal businesses is more pragmatic. Immediate formalization of the entire informal sector is unrealistic, they argue. This approach aims to strengthen investor confidence and build a more stable economic foundation for Cambodia. Ultimately, a phased approach to formalisation is considered most effective.