The Lao government had high hopes for the rare earth industry. Based on the previous 20% resource tax rate and 7% value-added tax on imported raw materials, Laos issued Presidential Orders No. 001 and 002 at the end of August, announcing a 20% resource tax on the rare earth industry and 10% export tariff, and increase the value-added tax rate on imported raw materials to 10%.
In recent months, Lao MPs expressed concerns about mining operations in Laos, saying exports of precious metals and other minerals were poorly managed and causing severe economic losses. They urged the government to establish laboratories to analyze every mineral deposit found in Laos, and said stricter supervision and closer cooperation in mining operations would allow the government to collect more revenue from mining companies, in a bid to ensure that the Lao's mineral resources were protected.
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