Presidential Ordinance No. 001/OP on Royalty Rate of Natural Resources.

This Presidential Ordinance aims to set out royalty rates of natural resources in order to ensure that the collection the royalty of natural resources is in an accurate, uniform and effective manner nationwide with the aim to create income to the government’s budget and contribute to strengthening the national socio-economic development. Article 2 establishes that: the royalty of natural resources is a financial commitment that has to be paid by domestic and foreign individual and legal entities who are authorised to exploit natural resources. The principles to set these royalty rate are as follows: 1. Based on the fundamental growth levels of production, economy and the economic and finance policies of the government; 2. Ensure sustainable development, effective utilization of natural resources and sustainable conservation; 3. Set out as the common royalty rates throughout the country. This Ordinance applies to domestic and foreign individuals and legal entities who are exploiting mining, non-timber products and water resource in Lao PDR. It does not cover plants, non-timber products that are planted by enterprises or households. Section II specifies Royalty Rates of Natural Resources, such as: Mineral Resources; Natural Resources for NTFPs; Natural water resources for hydro power plant projects, etc.