VIENTIANE, March 20 (Xinhua) -- Lao President Thongloun Sisoulith has issued a decree raising the value-added tax (VAT) rate from 7 to 10 percent to support the country's budget revenue and contribute to its socio-economic development.
The presidential decree was issued on Tuesday, aiming to improve budget collection ability to help solve the economic and financial difficulties that Laos has faced in the last few years.
Under the revised plan, the VAT rate of 10 percent will be applicable to a range of transactions, including imports, goods, general services, mineral imports, as well as electricity usage.
The adjustment would restore the VAT rate to its original level, which was in place from 2010 to 2021.
The rate was cut to 7 percent from January 1, 2022, as part of the Lao government's efforts to stimulate economic recovery following the COVID-19 pandemic. ■
