Vientiane Capital, date 28 September 2023

 

 

 According to the Constitution of the Lao People's Democratic Republic No. 63/NA, dated December 8, 2015;

 According to the Law on Environmental Protection No. 29/NA, dated December 18, 2012;

 According to the Law on State Property No. 18/NA, dated July 7, 2022;

 According to the Resolution of the Standing Committee of the National Assembly No. 261/NASC, dated August 28, 2023;

 According to the proposal document of the Standing Committee of the National Assembly No. 29/NASC, dated August 28, 2023.

 

 

Chapter 1

Prescribe

 

Article 1 Purpose

This edict specifies the rates and methods for calculating the value of natural resources to ensure proper, uniform, and effective collection of natural resource fees throughout the country. It aims to contribute to national budget revenue, in accordance with the law, and to support the sustainable development of the nation's economy and society.

Article 2 Natural Resource Fees

Natural resource fees refer to financial obligations that individuals and legal entities, both domestic and foreign, authorized to engage in businesses involving natural resources must pay to the state, based on the rates specified in this law.

Article 3 Principles for Determining Natural Resource Fees

The determination of natural resource fee rates shall adhere to the following principles:

1. Based on economic and social development levels as well as the government’s economic and financial policies;

2. Ensure sustainable development by promoting the efficient and long-term conservation of natural resources;

3. Establish uniform rates nationwide.

Article 4 Scope of Use

This edict applies to individuals and legal entities, both domestic and foreign, involved in businesses, including enterprises managing operations related to natural resources such as minerals, forestry resources, and water resources in the Lao People's Democratic Republic.

This law does not cover types of plants, fruits, or industrial timber derived from cultivation by entrepreneurs or the general population.

 

Chapter 2

Rates of Natural Resource Fees

Article 5 Rates for Mineral Resources

A. Mineral Resources

The collection of fees for mineral resources shall follow the rates as specified below:

No. Types of Minerals Percentage (%) of the Value

1 Precious stones and jade

 Diamonds, rubies, sapphires, and emerald.

 Jades 13

2 Semi-Precious stones 

 Pearl, alexandrite;

 Aroid, rhodolite, peridot, spinel, topaz, garnet, opal, tourmaline, agate, granite;

 quartz (rose quartz), amethyst 10

3 Precious metal

 gold, silver, platinum 12

4 Base metals (metals that are not precious)

 Copper, zinc, lead, tin, aluminum 9

5 Metals and alloys

 Metals

 Titanium, manganese, gold, vanadium, nickel, cobalt, molybdenum, tungsten 10

6 Metals with low content and associated with alloys

 Antimony, arsenic, beryllium, cadmium, bismuth, magnesium, mercury, selenium, rubidium, rhodium, titanium, and cerium. 10

7 Evaporite

 Coal, anhydrite, gypsum 4

8 Industrial mineral resources 

 Fluorite, barite, phosphorite, mica 7

9 Industrial clay-stone

 Cement limestone, Dolomitic limestone, Manganese ore, Lateritic stone, Clay soil, 

Red clay, Tuff, Asbestos, Glass production sand, Talc, Alunite, Iron ore, Granite stone, Diorite, Gabbro, Rhyolite, Slate 4

10 Polished stone

 Granite, Soft stone, Gneiss, Slate 6

11 Coal

 Lignite, Bituminous, Subbituminous, Anthracite 6

12 Fossil fuel and natural gas According to Protocol

 

For Mineral Resources Used as Raw Materials in Power Projects: The calculation should be based on the production cost of the extracted resources, as verified by the relevant sector, and the natural resource fee should be collected according to the rates specified in this article.

For strategic or reserved minerals designated for domestic use, exports are not permitted. The list of such minerals is determined periodically by the relevant sector.

B. Mineral Resources Used in Construction Projects

The natural resource fees for minerals used in construction activities should be collected at the following rates:

 

No. Types of Natural Percentage (%) 

of Price Unit

1 Loam soil, Silty soil, Clay soil 4 Cubic Meters

2 Sand 4 Cubic Meters

3 Pebble stone 4 Cubic Meters

4 Gneiss

 Dolomite stone

 Granite-diorite

 Basalt stone

 Sandstone 4 Cubic Meters

 

For Natural Resource Fees for Power Projects: The fees for natural resources such as soil, stone, and sand extracted within the concession area of power projects and used in those projects should be calculated at a single rate, as specified for natural resources used in power projects under Article 7 of this decree. For other mineral resources that are not located within the concession area but are used in the power project, the fees should be collected according to the rates specified in this article.

Article 6 Natural Resource Fees for Forest Products

The fees for forest products shall be collected at the following rates:

No. Types of Forest products Percentage (%) 

Of selling price

1 Natural timber with parameter of less than 20 cm for decoration 50

2 Parts of black wood/Agarwood 40

3 Parts of mai chanhom, mai chandai, mai chandeng, mai chankhao 30

4 Thoun rattan, small rattan 30

5 Rantan top, top of boun, top of tao 30

6 Khaeua haem, khaeua taeng, khaeua tipti, khaeua khaohor, khaeua sakhan 30

7 Charcoal 20

8 Bamboo, mai louangpouk 15

9 Kaen khoun 10

10 Rubber of tress, Rubber oil 10

11 Mak chong, mak chong ban, mak tao, mak seang baeua, mak kham paep, mak naeng, mak kabao, mak kaeua, mak khonkhaen, mak khosom, mak taek, mak kaueam, mak khakai, mak wai, mak kha, mak kor, mak pongpeng, mak lae, mak samsip, mak ka 10

12 Bong bark, maeuk bark, saied bark, porsa bark, hin bark, khae bark, hat bark, samhang bark 10

13 Rhizoma Smilacis Glabrae, hua dukdaeua, hua kapouk, hua koi, hua kha, hua samsip, yendon root, hua hanchay, hua samphanhou, hua man 10

14 Dok pheung 30

15 Cratoxylum, mai kor, Firewood, Shuttering, Pale 10

16 All types of bamboo shoots and ushrooms 10

17 Nam kieng 5

18 All types of vegetables 4

19 Reed, Wild green tree 4

20 Resin, Sticklac, Sellac

mushroom, grub, Averrhoacarambola Linn, honey, nuts, reed, bamboo, tea leaf, annonaceae, resin, cinnamon, malva nut 4

21 Sompha 30

22 Hua kha hom sam meung 50

For forest products not included in the above table, which are considered general resources, a fee of ten percent (10%) of the sale value must be collected.

The collection of natural resource fees for forest products must be conducted at the time of transport and export to foreign countries.

For Forest Products Close to Extinction: The export of forest products close to extinction is not permitted. The specific details of such products will be determined by the relevant authorities periodically.

Article 7 Natural Resource Fees for Power Projects (Government Revenue)

The natural resource fees for power projects must be collected as follows:

No. Types of Natural Resource Utilization Percentage (%)

The average of total revenue from electricity sales at current market value

(Present Value: PV)

1 Hydropower, geothermal, and coal power projects that export electricity to other countries.

2 Hydropower, geothermal, and coal power projects that supply electricity domestically and are currently installing more than 5 megawatts of capacity.

3 Hydropower, geothermal, and coal power projects that supply electricity domestically and are currently installing less than or approximately 5 megawatts of capacity. 2

4 Solar power, wind power, and biomass energy projects that supply electricity domestically. 1

5 Solar power, wind power, and biomass energy projects that export electricity to other countries. More than 2

 

The collection of natural resource values set in the table above should be collected based on total revenue from electricity sales before deducting various expenses. The rate for detailed collection should be specified in the concession agreement, where the collected revenue from natural resource values should equal the current value of the average revenue estimated over the duration of the project, according to the rate set in this provision.

Article 8 The rate for the value of natural water resources for each production and service 

The rate for the value of natural water resources for each production and service activity should be collected as follows:

No. Types of Use Collection Rate 

(Cubic Meters)

1 The use of natural water in industrial production activities. 5

2 The use of natural water in mineral sector. 10

3 The use of natural water in tourism and sports activities such as: resorts, hotels, guesthouses, restaurants, and various sports service activities. 5

4 The use of natural water in the production of waterwork. 5

 

Chapter 3

Collection and Transfer of Revenue from Natural Resources

Article 9 Collection of Natural Resource Assets

The finance sector is responsible for calculating and collecting the value of natural resources and other revenues, including adjustment fees related to natural resource value, as specified by law and related regulations.

Article 10 Transfer of Revenue from Natural Resources

Revenue from natural resource value as specified in this legislation can be transferred to the state budget in the form of domestic or foreign currency, as agreed upon in contracts or actual transactions, by considering the exchange rate according to the exchange rate of the state-run commercial bank at each moment.

For natural resource value from mined minerals as specified in Articles 5 and 6 in the case of extraction for export, it shall be transferred to the state budget in foreign currency, based on the agreement of the government.

Article 11 Methods for Calculating Natural Resource Value

The calculation of the natural resource value is done in two ways:

1. The calculation uses the actual selling price, with consideration of the standard percentage of the resource type sold. 

For mineral resources, the calculation is based on international market prices, domestic or regional market prices, or based on internal government assessments on the date of documentation for transfer of resource value.

2. The calculation based on the quantity of natural resources mined for sale or use, with consideration of the price value in monetary terms as specified in this legislation.

The finance sector is responsible for determining and managing the value of natural resources according to approved standards and quantities from relevant sectors.

 

Chapter 4

Final Provisions

Article 12 Enforcement

The government of the Lao People's Democratic Republic is the authority responsible for implementing this edict.

Article 13 Effective Date

This edict shall take effect from 01 January 2024, following the President's signing and its publication in the government’s official gazette.

This edict replaces the previous edict of the President regarding the value of natural resources, published under document No. 001/, dated 15 November 2015.

The benefits for business operators related to natural resources under previously signed contracts or agreements with the government before the implementation of this edict shall be implemented according to those contracts. If business operators wish to receive policies under this edict, they have the right to request for the appropriate measures related to the matter and the implementing agency shall inform them about the procedure for compliance with the law and regulations.

 

 

#	Title	Download
1	Provision of the President of the Lao People's Democratic Republic on the Natural Property Price Index, No 002/PS, date 28 September 2023	PDF
2	ລັດຖະບັນຍັດ ຂອງປະທານປະເທດ ສາທາລະນະລັດ ປະຊາທິປະໄຕ ປະຊາຊົົນລາວ ວ່າດ້ວຍ ອັດຕາຄ່າຊັບພະຍາກອນທໍາມະຊາດ ສະບັບເລກທີ 002/ປປທ, ລົງວັນທີ 28 ກັນຍາ 2023	PDF