SIDA continues to help tax sector

The Swedish International Development Agency (SIDA) will continue to help the ministry of finance to improve the tax sector, providing SEK 7,6 million for  the two-year extension period ( 2007-2008 ).  Now, the project has become the five-year  period (2004-2008) of total funding SEK 32,6 million (about US$ 4,5 million ). These funds will be used to continue the tax sector development project they had been working on from 2004 -2006.  The agreement was signed at the Ministry of Finance on 27 March by Deputy Minister of Finance Mr. Somdy Duangdy and Chargé d’Affaires of Sweden in Vientiane Ms. AnnLis Åberg.

Both sides reviewed the project last year and declared the first stage of the operation a success.

Consequently, SIDA has decided to continue assisting the ministry for the next two years, specifically in supporting the upcoming Value-Added Tax scheme, developing the Lao tax information system, and improving the tax sector's infrastructure.

The Swedish government is eager to support all efforts in the Lao government's strategy of poverty eradication

According to the agreement made for 2004-2006, both sides had agreed to improve tax policy, public administration and organisational infrastructure

Since then, the tax policy and administration project has seen many successes in stopping revenue leaks within the tax system, and will now focus on helping the ministry find other measures to improve this area

T he project also drafted new tax laws, created regulations and developed handbooks for the administration of revenue collection, as well as organising training courses for financial officials throughout the country on accounting, tax investigation, public administration and English lessons

It also created a system for Information and Communication Technology administration and a programme for tax administration, and supplied computers and other equipment for tax offices throughout the country.

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