Laos forms committee to reinforce revenue collection

The Lao government has established a committee to push for better revenue collection amid budgetary tension in the wake of a revenue shortfall, according to state-run daily Vientiane Times on Tuesday.

The committee consists of seven units which incorporate officials from various relevant sectors. The different sectors will coordinate efforts to push for better revenue collection in key areas including land taxes, commerce, tariffs, state property and the forestry and timber business.

Forestry work and timber extraction is of particular concern to the government. Revenue leakages and breaches of protocol in the export of rare timbers has raised concern and relevant officials have been warned to rectify the situation.

Deputy Prime Minister Somsavat Lengsavad recently commented that the government's efforts regarding national development and poverty reduction were being impeded by poor revenue collection.

In a trip to Savannakhet province, Somsavat advised local authorities to work harder in order to ensure that revenue would meet planned levels for the current financial year. In the 2012- 2013 financial year Savannakhet collected 1,036 billion Lao kip ( 129 million U.S. dollars) worth of revenue, or 98 percent of the yearly plan.

Savannakhet, along with Vientiane and Champassak, is a key area in the national economy and one of the main sources of revenue for the national budget.

Budgetary concerns have forced the Lao government to suspend a number of projects including infrastructure development schemes that were deemed not critically important to the nation.

During a recent meeting of the Lao National Assembly, Prime Minister Thongsing Thammavong clarified the economic situation and the steps the government was taking to address budgetary issues.

"If we cannot increase our revenue, we will never address the budget deficit and the country's debt," Thongsing warned.

The government has resolved to closely follow financial laws and regulations. Those who are found to be in breach of laws and led to loss of state revenue will face legal action as well as compensation for lost tax.