VAT to take effect next year

(KPL) The Tax Department, Ministry of Finance, said on Wednesday that the value-added tax (VAT) would be introduced on January 1, 2010.

At a press conference on the launch of the value added tax awareness campaign, which was held at Done Chanh Palace in Vientiane, Mrs. Manivone Insixiengmai, Director of the Tax Department, said that the implementation of the value added tax would strengthen the taxation system and enhance the government’s investment, mostly in basic infrastructure development.

“Taxpayers will pay taxes through the acquisition of products or services and VAT will be also imposed on imported products at the same rate of 10 per cent of goods price,” said Mrs. Manivone.

The law on value added tax was approved by the National Assembly of the Lao PDR in December 2006, which supplements the government efforts in developing regulations on trade in order to gain an access to the World Trade Organisation and ASEAN Free Trade Area (AFTA).

KPL Lao News Agency