NA approves amended Law on VAT
(KPL) The current National Assembly meeting yesterday approved an amended draft law on value-added tax (VAT) to ensure the revenue collection for state budget.
The amended VAT law consisting of 10 parts, 12 chapters and 66 articles, of which 20 are new articles and 24 amended ones, was proposed by Deputy Minister of Finance, Mr Bounchom Oubonpaserth at the ongoing 7th Ordinary Session of National Assembly.
The VAT law defines principles, regulations, methods and measures relating to the value-added tax for promoting production and services, investment, and export to ensure revenue collection for state budget, integration into regional and international communities and contribute to the socio-economic development of the country.
"The old version of VAT law was approved by the National Assembly in 2006 and enforced since 2010. Over the past four years of the enforcement of this law, it ensures revenue collection for state budget each year, representing 26 per cent of combined paid taxes," Deputy Minister of Finance, Mr Bounchom has briefed.
However, some contents in this law need to be precise and in line with current situations and requirements of the World Trade Organization.
Therefore, we have made a decision to amend this law with expectation that Lao PDR will have an international legal tool that meets the current requirements of social economic growth, investment, export and revenue collection.