The meeting had discussed with all type of vehicle shops and importers on the plan to reduce consumption tax from average 25%-150% to 3%-90% and will lower vehicle price.
Besides revising articles regarding vehicle tax, other articles of law on tax were also planned to revise for consistency after entering ASEAN Economic Community (AEC) may lead to tax on importing goods fell to 0% (except for some goods) and Word Trade Organization (WTO). Excise tax or indirect tax will be major tax reduction which lead advantages for internal consumer to afford vehicles especially lower-middle class.
The revised law is expected to officially enforce in the end of 2015 at the same time with the ASEAN Economic Community officially launches which is challenging to the government and vehicles importers. This will be significant to systemize the national income like other neighboring countries who gain consumption tax for 60%-70% downward. However, the tax reduction of Lao PDR is still high compare to neighboring countries.
Source: Vientiane Mai newspaper
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