Finance Ministry Unveils 10 Measures To Boost Revenue For 2017
Source: Vientiane Times
The Ministry of Finance has announced it will implement 10 significant measures for the rest of the year to achieve the projected target of collecting revenue worth 23.48 trillion kip.
The Deputy Prime Minister and Minister of Finance, Mr Somdy Duangdy, told the ongoing National Assembly session this week that revenue from taxes and State asset management is expected to reach 95 percent of the annual plan.
The revenue from tariffs and State enterprises and the insurance sector is anticipated to be 100 percent and 103 percent respectively of the targets. Due to this, domestic revenues are expected to touch 20.92 trillion kip by the end of the year.
One of the most important measures is expanding an electronic system to collect taxes from businesses such as restaurants, hotels and shopping centres in towns surrounding the capital.
In addition, the ministry will record tax payers in a data system and launch a pilot project for paying taxes through bank accounts and mobile phone banking.
The electronic system will also be introduced at more international border crossings to increase the ease of import and export procedures and to ensure increased transparency in tax collection.
Another measure is enhanced efforts to gather due funds from major sources, particularly excise duties charged on imported fuel and vehicles.
The finance ministry is also expected to generate more income from medium-sized and big businesses under the management of the central government.
The ministry will push for greater revenues from hydropower and mining projects as well as at border checkpoints.
The ministry is eager to summarise the sources of revenue nationwide to make it easy for authorities to accumulate income while enhancing efforts to plug loopholes that lead to financial leaks.
Another significant measure is that the ministry will work on gathering income from land lease and concession fees as well as the sale of State assets which failed to add to the national budget in the first six months of this year.
The finance ministry is committed to work in cooperation with the Ministry of Public Security and law enforcement agencies to sum up confiscated assets which have been ruled by the people’s courts.
Over the past five years, Laos has faced revenue shortfalls that impacted national development and created budgetary tensions.
In the first six months of this year, only 10.36 trillion kip was collected, representing 43.29 percent of the annual plan.
Meanwhile, the budget expenditure touched 12.61 trillion kip in the six-month period, representing 38.93 percent of the annual plan.
The Ministry of Finance is collaborating with provincial authorities to enforce the Prime Ministerial Order No. 9 and to strictly inspect all government expenditure to ensure the effectiveness of the budget and to avoid further deficits.
Prime Ministerial Order No. 9, issued on May 19, highlighted the need for frugal and effective use of the State budget in the nation’s best interests.