Laos' import tax system aims to boost imports of inputs for investment and production, while protecting domestic production and limiting luxury imports. Some foreign investment items do not have to pay import duties on imports of machinery and equipment for production. Moreover, in some special economic zones, input materials are not subject to taxes as long as the final product is exported from Laos. Raw materials and intermediate goods imported for imported alternative industries may receive special regulatory treatment.

1. Tax policy and tax rates

Laos' import tax system aims to boost imports of inputs for investment and production, while protecting domestic production and limiting luxury imports. Some foreign investment items do not have to pay import duties on imports of machinery and equipment for production. Moreover, in some special economic zones, input materials are not subject to taxes as long as the final product is exported from Laos. Raw materials and intermediate goods imported for imported alternative industries may receive special regulatory treatment.

Lao PDR's tariffs are based on the ASEAN Harmonized Tariff List (AHTN 2012), which follows standard ASEAN import tariff rates varying from 0 to 40%, excluding non-ASEAN countries. These tariffs are set by the Customs Department.

Excise tax rates range from 5-90% on many items.

The Lao government has phased out sales tax over the past few years and replaced it with a Value Added Tax (VAT) regime, although VAT is still applied inconsistently.

2. Trade Policy

Laos joined the WTO in 2013 and continues to integrate with its ASEAN neighbors through the ASEAN Economic Community. The following countries that have granted General Priority System (GSP) status to Laos include: Australia, Belarus, Canada, Iceland, Japan, New Zealand, Norway, Russia, Switzerland, Turkey, Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Germany, Greece, Finland, France, Hungary, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom.

The following countries offer duty-free treatment under the LDC on Lao goods: Chile, China, Taiwan, Kyrgyzstan, Tajikistan, and Thailand.

Laos has also signed trade agreements with all 9 other members of ASEAN and participated in a series of negotiations as a member of ASEAN. Laos has also signed bilateral agreements with Vietnam, China, Cambodia, Burma, Thailand, North Korea, Mongolia, Malaysia, Russia, India, Belarus, Argentina, Kuwait, and Turkey.

3. Some useful addresses

• Embassy of Vietnam in Laos

Address: #85, 23 Singha Road, Vientieane, Lao PDR Phone: +856-21-451990, 413409

Fax: +856-21-413379

Email: vnemb.lao@mofa.gov.vn

Website: http://www.mofa.gov.vn/vnemb.la

• Consulate General of Vietnam in London (Laos)

Address: No. 427-428, Ban That Bo-so, Luong Pha-bang District, Luong Pha-Bang Province, Lao PDR.

Phone: +856-071-254745

Fax: +856-071-254746

Email: tlsq-lpb@mofa.gov.vn

• Consulate General of Vietnam in Pakse (Laos)

Address: 31 Ban Ferry Bat, Pakse town, Champasak province, Lao PDR Phone: +856-031- 0085631. 212827

Fax: +856-031- 0085631 / 214140 / 212058

Email: vnemb.la@mofa.gov.vn

• Consulate General of Vietnam in Savannakhet (Laos)

Address: No. 118, Sisavangvong Road, Kayson Phomvihan Town, Savannakhet Province, Lao PDR

Phone: +856-41-251583

Fax: +856-41-212182

Email: lanhsusavan@mofa.gov.vn

• Vietnam Trade Office in Laos

Address: 76 Sisangvone Road, Vientiane Lao P.D.R Phone: +856 21451990

Fax: +856 21454743

Email: la@moit.gov.vn

• Embassy of Laos in Vietnam

Address: No. 40 Quang Trung Street, Hanoi, Vietnam. Phone: 024-39424576

Fax: 024-38228414/39422271

Email: laoembassyhanoi@gmail.com Website: www.laoembassyhanoi.org.vn

• Consulate General of Laos in Ho Chi Minh

Address: 93 Pasteur, Ho Chi Minh City Phone: 028-38297667

Fax: 028-38299272

• Consulate General of Laos in Da Nang City

Address: No. 16 Tran Quy Cable, Da Nang City Phone: 0236-3821208/3886874

Fax: 0236-3822628

Email: laoconsulat@vnn.vn