Vientiane: The Lao government's modernization of tax administration has significantly strengthened state revenue collection, with the Tax Revenue Information System (TaxRIS) increasing revenue collected through the system by 251 percent compared with the period before its implementation, Deputy Prime Minister and Minister of Finance Santiphab Phomvihane told the National Assembly.
According to Lao News Agency, speaking during the First Extraordinary Session of the 10th National Assembly on July 7, Santiphab said the Ministry of Finance has accelerated revenue administration reforms since 2020 under the National Agenda on resolving economic and financial difficulties, supported by Prime Minister's Order No. 18 and Decree No. 205. He highlighted that the proportion of state revenue collected through banks and other electronic payment channels has reached 95 percent, while cash collections now represent just 5 percent of total revenue.
The TaxRIS now covers more than 195,000 businesses and has driven a sharp increase in tax collection, with revenue through the system rising by 251 percent, equivalent to an average annual increase of more than 20 percent. Currently operational in Vientiane Capital, plans are underway for nationwide expansion.
Digital taxation has also contributed new revenue streams. Since late 2024, the registration of international digital service providers, such as Microsoft, Facebook, YouTube, and Netflix, has generated approximately US$12 million in tax revenue. In addition, the introduction of the Electronic Tax Invoice (E-Tax Invoice) system in Vientiane Capital, Vientiane Province (Vang Vieng District), Luang Prabang Province, and Champasak Province has generated more than 25 billion kip in additional revenue. Authorities anticipate that nationwide implementation will further enhance revenue collection, improve accounting accuracy, and expand access to financing for businesses through the SME Development Fund.
Santiphab also noted the integration of the National Land Database with the TaxRIS, connecting information on more than 2 million land plots, with 1.4 million plots already geo-referenced. Collection of land-related taxes and service fees through the integrated digital system is scheduled to begin in the third quarter of 2026. Moreover, the ministry has expanded the centralized treasury payment system to 15 international border checkpoints, with a nationwide rollout continuing throughout 2026.