The Lao government has enacted a ban on issuing land titles to buyers who acquire land use rights for commercial purposes without the necessary licenses from the natural resources and environment sector. This directive, issued by the Department of Land under the Ministry of Natural Resources and Environment, came into effect on May 10.

According to Article 5 of the Land Business Agreement, any individual, legal entity, or organization intending to engage in land-related businesses must register their projects with an enterprise registration official and obtain a license from the natural resources and environment sector. However, the Land Department has identified numerous instances of individuals and entities operating without the required licenses.

In response, the Minister of Natural Resources and Environment has emphasized the need for compliance with the Lao Law on Land and the Agreement on Business Related to Land to ensure that tax obligations are met. The new regulations stipulate that those involved in buying and selling land use rights, including installment sales, must secure a license from the provincial Department of Land or the Department of Natural Resources and Environment. Non-compliance will result in the denial of new land titles associated with land use rights.

This measure aims to enhance the management of the country's land resources and prevent tax evasion by those involved in land-related businesses. The Lao government is actively addressing land-related issues, focusing on improving tax management to bolster the state budget.

In early May, the government reinstated the value-added tax (VAT) to support budget revenue and socio-economic development. The VAT rate, previously reduced to 7 percent from January 2022 in response to the COVID-19 pandemic, has been restored. Additionally, in February, the Ministry of Finance introduced new regulations requiring all digital shopping platforms to comply with mandatory tax payments.