IFC supports Lao tax reforms
IFC supports Lao tax reforms
IFC, a member of the World Bank Group, has advised and supported the government of Laos in developing a new tax law.
The amended tax law will make it easier and faster for businesses to comply with tax regulations, thereby fostering increased productivity and economic growth.
IFC and the Tax Department of the Ministry of Finance hosted a workshop in Vientiane Province on Monday to introduce the revised tax law to the business community. Although the legislation took effect last December, officials have been awaiting the issuance of its implementation guidelines.
At the workshop, the authorities consulted the participants on the draft implementation decree. Their feedback will be incorporated in the final decree, which will be submitted to the prime minister for approval in September. The final decree will be implemented starting October 1, 2012.
With IFC's support, the Tax Department will hold an additional 16 workshops in the capital of Vientiane and all of the country's remaining provinces.
“The law will make it easier for businesses in Lao PDR to comply with tax regulations. Among the improvements are simplified tax calculations and accounting procedures for small and medium enterprises,” said Deputy Director General of the Tax Department Khamphay Vongsakhamphoui.
“We hope that the law will help widen the tax base, thereby increasing national tax revenue.”
The new law is expected to encourage businesses to file taxes more accurately, which will help level the playing field and enable similar-d businesses to compete on equal ground.
“More efficient tax-reporting processes represent a significant cost saving for local businesses and will make it easier for all enterprises to operate in the Lao PDR,” said Aimilios Chatzinikolaou,the IFC's Resident Representative in the Lao PDR.
The IFC has been active in Laos since 1998 and supports the country's transition toward a market-driven economy by improving the investment climate and promoting growth through improved access to services and infrastructure. The IFC's advisory programme in Laos is implemented in partnership with Canada, Finland, Japan, Ireland, Korea, the Netherlands, New Zealand, and Switzerland.
The IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. The IFC helps developing countries achieve sustainable growth by financing investment, mobilising capital in international financial markets, and providing advisory services to businesses and governments.
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