LAO PEOPLE’S DEMOCRATIC REPUBLIC

PEACE INDEPENDENCE DEMOCRACY UNITY PROSPERITY

 

                                                              Ministry of Industry and Commerce                                                               

ref.no: 1791/MOIC.DDT

Vientiane, dated 18 December 2018

 

Order

On controlling Tobacco Products by determining retail and

 wholesale minimum price

 

  • Pursuant to the Decree on the Organization and Implementations of the Ministry of Industry and Commerce, No. 230 / PM, dated 24 July 2017;
  • Pursuant to the Decree on price management on goods and services, No. 474 / PM, dated 18 November 2010;
  • Pursuant to the Office of the Prime Minister's Office, No. 1822 / PMO, dated 31 October 2018 on proposal for consideration of tobacco retail price of 4,000 kip per pack (testing).
     

To reduce access to tobacco for young citizen and low income people, aims to protect citizen’s health from the utilization of tobacco and obtaining smoke.

 

Minister of Industry and Commerce issues the order as follow:

 

  1. The retail price of locally made and imported tobacco products for sale in the Lao PDR shall not exceed 4,000 Kip per pack.
  2. To determination of wholesale on tobacco price for manufacturers, importers and distributors of tobacco products not less than 30,000 Kip per carton.
  3. To the Department of Industry and Commerce of provincial, capital shall coordinate and advise the District of Industry and Commerce Offices to disseminate and recommend this order to tobacco factories, distributors, markets and shops within their area of responsibility:
    1. 1. Managing the retail price of all locally sourced and imported tobacco products for sale  in the Laos, at markets, stores and other retails has to recommend as a minimum sale price not less than 4,000 kip per pack.
    2. 2. Publication and recommendation for tobacco factories, markets, stores and shops of tobacco products within their area of responsibility on the content of this order within 30 days from the date of this order being effective.
    3. 3.After the dissemination and recommendation to the Department of Industry and Commerce at the provincial, capital and the District of Industry and Commerce Office, Capital, assigns the commercial inspector to inspect the markets, shops and outlets. If there’s been found the violation that can take action against violators as mentioned in the Decree, no. 474 / PM, dated 18/11/2010 on price management on goods and services as follows:
    4. 4. The first violation shall carry a fine of 500,000 to 1,000,000 Kip per item as well as written a promise letter;
    5. 5. Second violation shall carry a fine of 1,000,000 to 2,000,000 Kip per item as well as a written promise letter;
    6. 6. Third Offense shall conduct a double fine of a second fine per item as well as take tobacco products to become a state property.
  4. Assign the Department of Industry and Commerce at provincial, capital report performance every quarter, if there are any difficulties on implementation, should report immediately to the Ministry of Industry and Commerce (Department of Domestic Trade) for find out and guidance on solutions.
  5. To the Department of Domestic Trade as main focal point shall coordinate with relevant agencies to guide, monitor, inspect and direct the Department of Industry and Commerce at provincial to implementation of this order.
  6. To the Department of Industry and Commerce at provincials, capital and the District of Industry and Commerce Offices, Capital implement this order strictly and effectively.
  7. Give a suggestion to the tax sector to charge 4,000 kip per pack as a minimum tax base;
  8. This order shall become effective after the signature and 15 days’ notice in Official Gazette.

              This Order replaces the Order on Tobacco control products with the minimum retail price, no 0896/MOIC.DDT, dated 11 May 2015.

 

                                                                                                                        Khemmani Pholsena

 

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