KPL
(KPL/VNA) – The President of Laos on March 19 signed a decree restoring the value-added tax (VAT) rate to 10% to support the country’s budget revenue and contribute to its socio-economic development.
(KPL/VNA) – The President of Laos on March 19
signed a decree restoring the value-added tax (VAT) rate to 10% to support the
country’s budget revenue and contribute to its socio-economic development.
The rate was cut to 7% from January 1, 2022,
aiming to boost the economy in response to the COVID-19 pandemic and to
encourage more businesses to register for VAT.
The restoration of VAT from 7% to 10% has
been recommended by many parties to the Lao Government as one of the measures
to improve budget collection ability to help solve the economic and financial
difficulties that Laos has faced in the last few years.
The Lao Ministry of Finance pointed out
several factors backing an increase in VAT rates, including the fact that the
current tax rate is not as effective in stimulating the economy as predicted.
In addition, the number of businesses registered under the VAT Law is lower
than expected, so the government needs to increase revenue to reduce the budget
deficit and stabilise its domestic currency.
In addition to increasing the VAT rate, the
ministry is also considering other measures to improve the tax system. These
measures include accelerating the construction of a tax refund mechanism to
help reduce the government's financial losses through tax exemptions, while
also supporting local businesses.
KPL
