|
New measures to boost revenue collection
The government is considering offering financial incentives to local authorities that collect the full amount of revenue due next fiscal year.
The Ministry of Finance proposed its latest fiscal policy to tax and custom officers at a finance sector conference in Vientiane last week.
Deputy Prime Minister Somsavat Lengsavad, who is in charge of economic affairs, said he agreed with the concept in principle and asked the ministry to draw up a prime ministerial decree on this issue.
The move is part of efforts to ensure more efficient tax collection, as the government must ensure its coffers are filled so it can meet the increasing demand for public sector spending.
Giving advice on the implementation of the 2011-2012 fiscal plan, the ministry said local authorities will be given the green light to spend all and any surplus revenue collected so they are better equipped to deal with natural disasters.
Provincial authorities will also get 10 to 15 percent of any surplus revenue which they helped the central administration to collect from major businesses. The efforts of officials who are particularly diligent in this regard will be acknowledged by the government.
Finance policy makers hope the latest incentives for local authorities and finance officials nationwide will boost revenue collection in the 2011/2012 fiscal year, which begins in October.
Policy makers also said the ministry will continue to provide more political guidance for tax and customs officials, to instill them with more morals and prevent loss of revenue. They also said more use of IT systems will help to reduce the risk of corruption.
A number of National Assembly members have been pushing the government to take serious action against finance officials who engage in corrupt activities.
Under the National Socio-Economic Development Plan, which the National Assembly approved in June this year, out of a budget of 15,726 billion kip, about 11,516 billion kip must come from domestic sources, with the rest to be sourced from the international community in the form of grants and loans.
The government plans to spend 17,831 billion kip next fiscal year, which will result in a budget deficit of 2,104 billion kip.
The government plans to use 7,900 billion kip for public sector spending, with a focus on health and education. It views investment in the social sector as a means to end poverty and achieve the UN Millennium Development Goals.
ADB officials say Laos has increasing potential to collect more revenue amid a growing economy. But the government has been able to collect revenue amounting to only 19 percent of GDP. This figure is well below that of other developing nations in the region, which have collected revenue amounting to about 27 percent of GDP.
ADB says that if the Lao government can amass the same amount, it would enable pay increases for civil servants and bring wages in line with those in other Asean countries.
vientiane times
|
