Electronic system helps govt to boost revenue

Revenue earned from taxes increased by 20 percent in the first six months of this year compared to the same period last year, according to the Ministry of Finance.
The increase followed the introduction of the new tax revenue management information system (TAXRIS) earlier this year. So far, the system is operating in 10 major towns in seven provinces of Laos.
The finance ministry plans to expand the system to all provinces by 2020 as part of the government’s efforts to modernise the e-tax payment system and enhance transparency in the financial sector.

Meanwhile, taxpayers will be encouraged to make payments through the TAXRIS and other banking systems to boost national revenue.
To date, over 3,500 businesses have registered to pay taxes through the TAXRIS system, and the finance ministry has been urged to work in cooperation with local authorities to encourage more enterprises to do so.
TAXRIS aims at modernising revenue management in line with government policy and international best practices of accountability and transparency.
The finance ministry has taken the advice of experts from the European Union (EU), World Bank and other organisations to modernise public finance management.  
The ministry has also introduced a single-window customs system to facilitate import and export procedures to help improve the overall business environment.
Importers and exporters can pay tariffs, taxes, service charges and any other fees through the Lao National Single Window (LNSW) at border crossings where goods are transitted.
The LNSW has been integrated with the electronic customs declaration system, known as ASYCUDA, and the Smart Tax system. The LNSW is also designed to link to the industry and commerce, public works and transport, and agriculture and forestry sectors.
These electronic systems are being implemented at the first Lao-Thai Friendship Bridge in Vientiane with plans for installation at other international border crossings in 2020.
Thanks to these electronic systems, income amassed at the first Lao-Thai Friendship Bridge increased by 10.25 percent in the first six months of this year compared to the same period in 2018.
In 2019, the government plans to collect 26.3 trillion kip in revenue, of which domestic revenue is expected to reach 24.24 trillion kip with expenditure set at 33.39 trillion kip.
In the first six months of this year, revenue collection was expected to reach 12.96 trillion kip, equal to 49.2 percent of the target for the whole year.
Although the government is encountering challenges in gathering sufficient revenue, the introduction of electronic systems and the increase in tax payments will help to plug financial leaks and eliminate corruption by officials.

By Somsack Pongkhao
(Latest Update August 2, 2019)