Laos working with IFC to revise value added tax
Laos working with IFC to revise value added tax
The IFC, a member of the World Bank Group, is working with the Lao government in consultation with the private sector to make the country's tax system more effective and equitable.
Specifically, the authorities are seeking to amend the value-added tax law that was introduced three years ago. The IFC, in partnership with the World Bank, is helping the Tax Department of the Ministry of Finance revise the Law on Value-Added Tax, which will be submitted to the national assembly for approval in June.
In addition, the IFC will support the drafting and implementation of the revised value-added tax law's decree and subsequent regulations.
“Improving the administration of the value-added tax sends an important signal to the business community that we are taking a big step toward a more transparent and equitable taxation system,” said Sinxay Phetsavong, deputy director of the Tax Revenue Collection and Management Division under the Tax Department.
“It is important for us to consult the private sector to ensure that the new law will address their concerns and make it easier for them to do business.”
The IFC and the Tax Department hosted a seminar for more than 50 representatives from the private sector earlier this month in Vientiane. They discussed findings from a recent IFC survey to gauge Lao companies' views on the value-added tax.
Survey respondents identified several aspects that make it difficult for them to do business, such as cumbersome refund procedures and limited access to information on how to comply with the value-added tax law.
“Equitable and fair taxation is key to creating a stable and healthy investment climate,” said Aimilios Chatzinikolaou, IFC's resident representative in the Lao PDR. “The IFC is committed to supporting the Lao authorities in further improving the taxation system and making it easier for entrepreneurs to pay taxes, grow their businesses, and create jobs.”
Since 1998, IFC has been working with the Lao government to improve the country's investment climate through measures such as streamlining business start-up procedures and simplifying the tax regime. IFC's support programme with the Lao Tax Department is currently implemented in partnership with the government of Switzerland.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilising capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than US$20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world's most pressing development challenges.
vientiane times
