Laos Increases VAT Rate to 10% in Economic Base Adjustment, Effective March 21, 2024

• Laos increased VAT from 7% to 10% as recommended by the World Bank
• The increase in VAT is aimed at supporting the country’s budget and economic development
• The new VAT rate will apply to various transactions including imports, general services, mineral imports, and electricity usage
• Laos also reduced the VAT rate to 7% from January 1, 2022, to stimulate economic recovery post-COVID-19
• The increase in VAT may impact the cost of goods and services, inflation rate, and standard of living for the people of Laos
• The World Bank’s recommendations for tax adjustments in Laos are focused on addressing current economic challenges
• Laos has faced economic instability due to high public debt and low foreign investment
• The country’s currency, the kip, has depreciated significantly compared to other currencies, leading to financial difficulties
• In the past, Laos has implemented tax increases to control the influx of luxury goods and stabilize the economy.

Source: thansettakij.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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