Thailand
Laos: Govt tax breaks aim to spur investment in Xaysomboun
The government has introduced a tax break policy to attract more private investment in Xaysomboun to enable the province to catch up economically with other areas of Laos.
The 12-page Decree on Economic Development Policy in Xaysomboun, signed by Prime Minister Thongloun Sisoulith, is being circulated among the sectors concerned.
Deputy Minister of Information, Culture and Tourism, Mr Ounthuang Khaophanh, recently highlighted the importance of this initiative for expediting economic growth in Xaysomboun.
Under the policy, businesses investing in tourism development and hotels will be exempt from paying profit tax for a period of five years.
If they increase investment in tourism by more than 50 percent of the original amount invested, they will be exempt from paying profit tax for another two years.
Investors will also be exempt from paying land concession fees, and the amount they spend on tourism-related human resource development training can be deducted from their overall tax bill.
To support the government’s promotion of ecotourism, businesses investing in homestays and other people’s participatory tourism activities will not have to pay tax for five years.
The government says ecotourism positively impacts almost everyone in the local community and tourism benefits people who sell food and other items to visitors. Ecotourism also encourages villagers to preserve forests and biodiversity.
Mr Ounthuang said the government also promotes commercial production, particularly clean/organic agriculture and agriculture research centres, crop seed production, bio-fertiliser production, slaughterhouses, and the agriculture processing industry.
Businesses investing in these fields in Xaysomboun will benefit from the government’s tax break policy. For instance, there will be tariff exemptions on imported agricultural machinery, equipment, crop seeds, and pesticides.
The Bank of the Lao PDR is also encouraging commercial banks to issue loans to businesses engaged in commercial production in Xaysomboun province.
The payment of fees for the lease and concession of state-owned land will be waived for five years while profit tax on agricultural production, processing and services will be waived for 15 years.
The province of Xaysomboun was created in December 2013 and has a population of more than 81,800 people.
The province covers an area of 8,500 square kilometres, comprising the districts of Hom, Longxan, Anouvong, Longchaeng and Thathom.
Located 220km from Vientiane, about a four-hour drive away, Xaysomboun is receiving special attention from the government as it attempts to spur economic growth in the province.
Agriculture and tourism have been earmarked as areas for development in order to accelerate economic growth and poverty reduction efforts.
Local authorities say they will develop Xaysomboun province based on its potential and source more investment from the private sector to operate tourism-related businesses and grow crops, particularly cold-weather crops for commercial purposes. The province is endowed with a large area of arable land.
Source: https://www.vientianetimes.org.la/freeContent/FreeConten_Govt_244.php