The government announces the termination of tariff and tax exemption for all types of fuel imports including the import under aid and national defense projects. It means that for now on the import of all types of fuel are required to fully pay tariff and tax according to the related laws of the Lao PDR. The purpose of termination of tariff and tax exemption for the import of all types of fuel is to legalize the import of all types of fuel according to the related laws and regulations as well as to ensure completeness and transparency in revenue collection into the national budget.
Minister to the Prime Minister’s Office and Government Spokesman, Dr.Chaleun Yiapaoher spoke at a press conference on 4 August 2016 that “the decision is based on the Resolution of the 10th Congress of the Lao People’s Revolutionary Party which mentions that party’s policies shall turned into laws and regulations as it is a carrier and instruments to govern society. Besides, Investment Law no. 02/NA, dated 8 July 2009, Article 52, point 2, paragraph 2 states that: “The import tariff and tax of all types of fuel shall not be exempted”. Furthermore, Customs Law (Revised Version) no. 04/NA, dated20 December 2011 and Value Added Tax Law no. 04/NA, dated 26 December 2006 do not permit tariff and tax exemption for the import of all types of fuel”.
He also added that “due to the fact that Lao PDR is undeveloped country, the infrastructure in all field has not been fully formed. Therefore, the government has granted tariff and tax exemption policy for the import of fuel that serve such infrastructure project to attract both domestic and foreign investment”.
Notwithstanding we had achieved a great number of accomplishments that helps contribute to the development of our national economy and society in practice, there are gaps for illegal fuel import to sell nationwide which caused complications on the management as well as the huge loss of revenue collection. For instance, the tariff and tax exemption for all types of fuel import on 20 May 2016 amounted for 1,49 billion liters which worth 1.495 billion Kip based on current fuel price”.
For this reason, at the Prime Minister and Deputy Prime Minister Meeting on 1-2 August 2016, the government made the decision to terminate tariff and tax exemption for all type of fuel imports nationwide which will be started to implement on 4 August 2016. The tariff and tax exemption projects that have already been approved will be re-inspected and re-negotiated to strictly follow the laws and regulations. Meanwhile, the government assigns line ministries, particularly, Ministry of Finance, Ministry of Planning and Investment, Ministry of Industry and Commerce, Ministry of Energy and Mine and other relevant Ministries to inspect the implementation of the approved tariff and tax exemption of the import of all types of fuel projects on the imported amount, balance and find solutions to report to the government, Prime Minister and Deputy Prime Ministers accordingly for consideration. The government also assigns line ministries to immediately inspect and improve regulations related to the import of all types of fuel for harmonization and using as a reference for the implementation of the government’s decision.
Source: Office of the Government of the Lao PDR’s Website, accessed on 16th August 2016.
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