The ceremony to sign the MOU for the project for the installation and administration of the automated system for import and distribution of Lao fuel was held on 3 April 2014. The representatives of the Lao Government at the joint signature ceremony was Mr. Adsaphangthong Siphandone, Director General of Customs Department, Ministry of Finance and Mrs. Thongthip Phommachack, Managing Director of Bouathiplao Company limited, also with the participation as a witness of Mr. Sila Viengkeo, Deputy Minister, Ministry of Finance, Mr. Sitthisone Thepphasy, Director General of Taxation Department, Ministry of Finance, and the participation from Department of Department of Standardization and Metrology, Ministry of Science and Technology, Customs together with some relevant sectors.
At the signing ceremony, the Department of Customs, Ministry of Finance made a presentation on the project background, mentioning project which is worth 15 million USD. The Bouathiplao Company Limited will hold a 90% share and the Lao Government will hold a 10% share. The project is a 10 year concession and can be extend once. The automation system will administer the import of fuel that is imported under exemption of duty-tax, that is the import of fuel under exemption of duty-tax for use in investment project and fuel transition in Lao PDR. This electronic system is an automated programme which includes online metering, a control programme, GSP programme, the system to control the distribution of fuel and other related systems and is aimed at accurate administration and inspection the import of fuel.
In the agreement for the concession, the Department of Customs, Ministry of Finance has emphasized to the Bouathiplao Company Limited named as the Concession Company to implement and complete the installation over the entire country within 10 months from the day of contract signature, the implementation of the project is divided into 2 periods: (1) installation of the automation system for monitoring import to fuel stores and distribution from temporary store to domestic store, (2) installation of the monitoring system from domestic store to gas stations and release from gas station. The service fee for using of this system is 22 kip/litre on the part of a gas station that releases fuel from store. The service fees will reduce the risk of damage (fuel emission) that government has defined as a price instruction on fuel of 50 kip, which means that it will not collect any additional fees on the current price instructions and it will not affect to domestic price. However, in order to ensure and maintain the service fees, the implementation of the project will undergo a joint review every 5 years.
This project concession aimed at facilitating to collecting authorities specifically Department of Customs and Department of taxation can monitor the import and distribute of fuel complaint with regulation. Currently, many countries are applying this automation system and found that it was an effective system, to ensure the collection of income as accurately, transparency and obviously.
Information Source: Economy-Commerce newspaper, issued date 4 April 2014
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