VIENTIANE, June 20 (Xinhua) -- Products or services that Lao government does not promote will be subject to higher taxes if a new law on excise duties comes into force in January 2020.
Lao Deputy Prime Minister and Minister of Finance Somdy Douangdy presented a draft of the proposed law on excise duties for debate during the Lao National Assembly (NA)'s ongoing session on Wednesday.
He highlighted the need to enact the law to reflect the reality of the nation and to conform to international integration, local daily Vientiane Times reported on Thursday.
The new law is designed to differentiate tax rates imposed on products that are necessary for people's lives and those which will have negative impacts on people's health and the environment, said the Lao official.
The government will charge a higher excise tax for golf business operations, increasing it from 10 percent to 25 percent. The levy imposed on casinos and casino games will increase from 35 percent to 50 percent. Other services to be subject to the law include vehicle-racing, cock-fighting and horse racing.
In contrast, lower levies will be imposed on items that the government believes are necessary for improving people's lives. Under the draft law, excise tax for fuel will drop from the current rates ranging from 9 to 39 percent to 5 to 35 percent as fuel is a necessity for people. The tax charged on 110cc motorcycles will decrease from 20 percent to 5 percent as a way to support low-income earners. Levies charged for internet access will be reduced from 10 percent to 3 percent as the internet is essential for business operations and the daily lives of people.
Lao government has listed 18 items and services to be covered by the law.
