Govt to improve tax system collection for integration
Govt to improve tax system collection for integration
The Lao government expects it will be able to abolish reference prices for goods, which it uses to calculate tax on imported products, so that it can integrate itself with the world economic community.
The move is one of the main requirements for the country under the obligations of the World Trade Organisation and will also create conditions for Laos to welcome the establishment of the Asean Economic Community in 2015.
The Ministry of Finance is currently drafting the regulations to readjust import duties and taxes before declaring the new improvements officially.
Financial officials met with vehicle importers and sales enterprise representatives last week to discuss the issue.
Chaired by Deputy Prime Minister, Mr Somsavat Lengsavad, the meeting sought to find arrangements which will allow benefit for all three sides including the government, entrepreneurs who import vehicles and the end-purchasers of the imported vehicles.
Initially the government planned to introduce such regulatory improvements last year but was unable to do so due to a lack of preparedness among government staff and enterprise entrepreneurs so the move was postponed.
The government assured importers that using the calculated tax collection system would not have a significant impact on entrepreneurs or vehicle buyers but would require sincerity, honesty and transparency from all parties.
It is hoped that the improved measures will increase cooperation and coordination between the government and vehicle importers and sales entrepreneurs in implementing their obligations and responsibilities according to the law.
Some business units are still avoiding paying taxes and other obligations which is affecting the government budget, while various government staff are joining with those business units to illegally import vehicles.
Some local government staff and entrepreneurs have a lack of knowledge and understanding about the law and its implementation, Minister of Finance, Dr Lien Thikeo said at the meeting.
The underpayment or non-payment of vehicle import duties has been a significant factor in the ministry not being able to collect revenue and meet its yearly collection targets.
For nine months of the year, the ministry has collected income equivalent to only 61 percent of the annual plan and despite tightening measures it expects to reach only 93.65 percent of the annual target, Dr Lien reported.
To solve the problem, the government and especially the Ministry of Finance will improve different systems to enhance accountability and transparency, including technology systems which keep better transaction records.
He explained that greater coordination between the ministry and the relevant sectors especially the business units themselves should allow for more transparent dealings, particularly through the adoption of modern management mechanisms.
“We should improve the programme systems to integrate with every sector, the tax and customs departments, the industry and commerce sector and also public works and transport,” Dr Lien recommended.
During the meeting, Deputy PM Somsavat called on vehicle importers and sales enterprises to be sincere in their dealings and take responsibility in contributing to socio-economic development.
vientian times
