KPL 6 July 2017:
(KPL) At a recently held meeting between cabinet members and provincial governors (Jun 23-24), Prime Minister Thongloun Sisoulith assigned the Ministry of Natural Resources and Environment to work with the Ministry of Finance to re-examine land taxation, the selling of land, and the transfer of ownership to analyze the positive and negative impacts of the Turning Land into Capital policy and ensure that land taxes go to the state treasury.
A report prepared by the Ministry of Planning and Investment about the Turning Land into Capital policy, which was initially designed to reduce the spending of state budget on infrastructure development, has faced many challenges over the past years because several projects undertaken according to this policy haven’t proved effective and have caused loopholes in revenue collection.
At the meeting, governors noted that the Turning Land into Capital policy of the government would bring about huge benefits for the government and justice for the Lao multi-ethnic people if proper mechanisms and measures were put in place along with proper study into the negative and positive impacts.
The Ministry of Planning and Investment noted that the Turning Land into Capital policy is yet to be legally guaranteed. As a result, the implementation of the policy at the local level is not being consistently implemented and is causing negative impacts on the people and creating more conflicts in the society.
It said that the determination of land prices and concessional fees for land, either of the government, individuals, or companies is yet to be consistent and has raised question about adjustments to prices of land in economic and remote areas.