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Lao officials study land management of China

Lao land officials are taking lessons from Chinese experts regarding land management after they found 49.9 percent of China's Gross Domestic Product (GDP) derives from land revenue.

Currently the revenue from land in Laos is less than 1 percent of the country's GDP which is considered very low compared to other countries in the region and the world.

Chinese experts presented details about land management in their country at a meeting held in Vientiane on Thursday, which was attended by Lao land officials from throughout the country.

Head of the National Land Management Authority (NLMA)'s Research Division, Dr Palikone Thalongsengchanh said Lao officials may apply China's lessons to efforts to increase revenue from land in Laos.

German experts have estimated revenue from land in Laos may jump to 35 percent of the country's GDP following the completion of the land allocation project in Laos.

The projected increase can be attributed to the fact that all revenue collection from land tax and fees will be made through a computerised system similar to an electricity bill.

“In Germany, the revenue collection from land covers 60 percent of their GDP,” Dr Palikone said, adding that in Germany fathers giving land plots to their children incurred a high transfer tax, but in Laos this is not the case.

He said at the moment the transfer tax was not suitable for the Lao situation as many people still live under the poverty line and the tax could affect their livelihoods.

The NLMA is operating a land allocation project in many provinces of Laos, mostly in urban towns where many business activities operate. The land allocation aims to facilitate the economic growth of Laos and alleviate the poverty of people.

So far, land in 56 of the country's 142 districts has been allocated and the whole project is scheduled for completion in 2015.

Land has played an increasingly important role in the Lao national budget since the establishment of the NLMA in 2007-08.

In 2009, the revenue from land reached 121 billion kip through the collection of land tax, and fees for changes of land ownership, land concession fees, fees for changes in land classification and other services. But the main source of the revenue is from land tax.

For instance, the revenue from land reached 102 billion kip in the first 10 months of the 2009-10 fiscal year, of which 72 billion kip was from land tax.

Despite the increase of land revenue in Laos, land officials remain concerned about revenue collection from land falling short of the target of 132 billion kip for the 2009-10 financial year.

 

By Times Reporters
(Latest Update August 20, 2010)