Laos’ military says the country’s crypto operators owe $20m in unpaid taxes.
In an effort to boost government revenue, Laos appears to be turning its attention to the country's crypto sector.
China's state-run news agency Xinhua News reported on Nov. 9 that cryptocurrency operators in the Southeast Asian country owe $20 million in taxes and license fees, citing reports from the Lao People's Army. To expand government revenue streams, Laos previously allowed 15 blockchain companies to mine crypto or operate as exchanges.
However, as detailed by Laos Prime Minister Sonexay Siphandone, two companies in the novel initiative have made no progress. Others defaulted on their payment obligations to the state. Sonekey says that since the government imposed tax obligations, the value of cryptocurrencies has fallen by a total of 50%. Therefore, the government of Laos will reduce the balance of crypto companies by 50%.
With this decision, the companies have started paying their dues, and all dues are expected to be completely stopped by the end of the year, Sonekey said. However, he warned that companies lagging behind in the process could be suspended, fined or have their licenses revoked.
The government of Laos faced a problem this year due to a prolonged drought between January and June. Among the many victims of the disaster was the state-owned electricity utility Électricité du Laos, which forced it to stop supplying electricity to the country's crypto-mining operations. In May, the Lao government outlined several key principles for its digital transformation, including using digital technology to generate new fiscal revenue, strengthen foreign exchange reserves, curb inflation and promote sustainable economic growth.
Blockchain 4.0 is revolutionizing #Laos. It is to promote financial inclusion, transparency and security in transactions. Smart contracts and decentralized finance are opening new avenues for growth. Truly a change maker for the country's economy. #MetaBankLaos… pic.twitter.com/oyaAKzFNjk
— MetaBank (@MetaBankSG) May 27, 2023
