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Tuesday, June 18, 2024

Lao Government To Provide Tax Breaks, Reduced Rates Amid Coronavirus Outbreak

This Week

The Lao government is to reduce and defer the payment of tax, customs, and other administrative fees during the coronavirus outbreak.

Deputy Prime Minister Dr. Sonexay Siphandone stated on Thursday that the government was taking such measures to mitigate economic effects due to the virus outbreak.

The vehicle road tax payment deadline will be extended from March 31 to June 30, while the payment of personal income tax will be exempted for low-income workers, or those earning under LAK 5 million, until June 2020.

Profit tax will be exempted for businesses earning LAK 50 million to 400 million for the second quarter of 2020.

Tourism businesses will also receive a tax deferral for three months beginning in April. Entitled businesses will be determined by the Ministry of Information, Culture, and Tourism.

Tax exemptions will be applied for certain goods related to the prevention and control of the Covid-19 virus, while the price of fuel will be regulated, and Dr. Sonexay has recommended that pricing for utilities including electricity, water, and internet be reduced.

Commercial banks will be expected to reduce the time required to repay loans, both principal and interest. Interest rates and fees will be reduced, and banks will be required to offer new loans to debtors and affected enterprises.

Meanwhile, welfare measures are under consideration for workers who were retrenched by businesses affected by the virus outbreak.


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