Lao Government Approves Tax Reduction on Diesel for Farmers

A farmer in Bolikhamxay Province plowing a rice paddy.

The Government of Laos has agreed to abolish the excise tax on diesel, which was previously levied at 15%, in an effort to reduce the retail price of fuel and lessen the impact of high energy prices on farmers.

Vientiane Times reports that the removal of the excise tax charged on diesel is in response to a request from fuel businesses and importers, who are struggling to source sufficient funds to buy fuel.

The Lao government and the Lao Fuel and Gas Association are in discussions regarding the shipment of next month’s fuel.

The government is holding talks with the Lao Fuel and Gas Association over the possibility of importing another shipment of fuel, as it is expected that current stocks will be depleted by the end of this month, a senior member of the Association said.

Due to the fuel crisis, a number of Lao farmers have been in desperate need of fuel and made a plea to officials to find a solution to the urgent, ongoing fuel crisis.

The rising cost of fertilizers, exacerbated by the conflict in Ukraine, has also been cited as a major issue causing some farmers to abandon their fields.