Information about Asia and the Pacific Asia y el Pacífico
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Lao People’s Democratic Republic

Author(s):
International Monetary Fund
Published Date:
October 2008
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Information about Asia and the Pacific Asia y el Pacífico
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Table 1.Lao P.D.R.: Real GDP Growth, 2002-07 1/(In percent)
200220032004200520062007
Est.
Agriculture4.02.23.52.52.92.7
Crops3.50.04.02.52.6-0.4
Livestock and fishery4.64.93.01.92.83.7
Forestry5.18.61.35.56.523.9
Industry10.111.512.515.917.715.2
Mining and quarrying10.1267.5-5.1121.352.833.0
Manufacturing13.06.313.79.014.813.9
Construction-6.512.924.619.415.613.2
Electricity, gas, and water6.31.25.36.41.1-2.9
Services5.77.27.56.77.27.4
Transportation, storage, and communication8.49.39.54.77.58.1
Wholesale and retail trade7.510.79.27.38.28.9
Banking, insurance, and real estate-46.314.0-24.022.212.415.9
Ownership of dwellings2.52.52.52.52.52.5
Public wage bill15.03.41.01.01.01.0
Nonprofit institutions4.27.07.42.92.92.9
Hotels and restaurants2.7-5.016.522.015.110.0
Other2.68.716.17.78.111.5
GDP at factor cost5.95.76.97.28.47.9
Import duties12.68.914.511.114.011.5
GDP at constant prices5.95.86.97.38.47.9
Source: Data provided by the Lao P.D.R. authorities.

Official estimates, which differ from IMF staff estimates.

Source: Data provided by the Lao P.D.R. authorities.

Official estimates, which differ from IMF staff estimates.

Table 2.Lao P.D.R.: Nominal GDP by Sector Origin, 2002-07 1/(In billions of kip)
200220032004200520062007
Est.
Agriculture9,17410,82912,37813,59314,94315,891
Crops5,4396,2807,2167,9298,6888,958
Livestock and fishery3,1563,8244,3504,7475,2125,594
Forestry5787258119171,0431,339
Industry4,4925,7837,1908,80011,05813,185
Mining and quarrying893783979411,5352,115
Manufacturing3,4834,2775,3736,2767,6969,077
Construction3905087007619401,101
Electricity, gas, and water530619720822887892
Services4,5545,7036,7857,7998,8269,813
Transportation, storage, and communication1,1151,4081,7031,9132,1932,457
Wholesale and retail trade1,7922,2922,7643,1783,6724,139
Banking, insurance, and real estate7610084110132158
Ownership of dwellings509603682750821871
Public wage bill6438229571,083886926
Nonprofit institutions12151516203216
Hotels and restaurants374423528691849967
Other324151596879
Import duties182211237269339395
GDP at current market prices18,40122,52526,59030,46235,16739,284
Source: Data provided by the Lao P.D.R. authorities.

Official estimates, which differ from IMF staff estimates.

Source: Data provided by the Lao P.D.R. authorities.

Official estimates, which differ from IMF staff estimates.

Table 3.Lao P.D.R.: Output of Major Commodities, 2002-07
Unit200220032004200520062007
Est.
Agriculture
Paddy (rice)thousand tons2,4172,3752,5292,5682,6092,710
Cornthousand tons124143204373450688
Sweet potatoes and cassavathousand tons111150175181284341
Coffeethousand tons633663671252526
Tobaccothousand tons322223282528
Livestock
Buffalothousand heads1,0911,1131,1121,0961,1081,123
Cattlethousand heads1,2091,2451,2491,2721,3211,353
Pigsthousand heads1,4161,6551,7281,8262,0332,186
Goats and sheepthousand heads126138139190210268
Poultrythousand heads15,27519,47519,48119,80120,80320,453
Forestry
Logsthousand m3447457325236305448
Industry
Tintons3346071197878091,109
Gypsumthousand tons9998244239206232
Goldkilograms8,9007,00010,13411,9159,086
Copper 1/thousand tons306163
Manufacturing
Hydropowermillion kwh3,6033,1793,3473,4303,6063,450
Beerthousand hectoliter6527028278851,0581,208
Soft drinksthousand hectoliter148164187194240256
Cigarettesmillion packs55688482116124
Detergenttons7007108607001,0821,255
Nailstons7457609001,0002,0992,168
Oxygenthousand bottles2121232399102
Plastic productstons4,4204,5305,5006,5007,4517,383
Saltthousand tons222225262025
Wood furnituremillion kip15,35015,55020,33320,058
Rattan furnituremillion kip3453504304501,6291,915
Garmentsmillion pieces333437386847
Sugartons5624504751,200
Tobaccotons5939471,8972,8003,8363,991
Plywoodmillion sheets2,2501,5501,3002,000765952
Cementthousand tons263280282320508528
Bricksmillion pieces8990120100239244
Woodthousand meters235198158148
Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Total of copper production by Oxiana and Pan Australian.

Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Total of copper production by Oxiana and Pan Australian.

Table 4.Lao P.D.R.: Consumer Price Index, Main Components, 2004-08(Year-on-year percent change)
Weight20042005200620072008
Mar.Jun.Sept.Dec.Mar.
Foods46.27.512.09.49.96.97.86.09.1
Rice, bread, flour, and other cereals14.7-1.917.623.520.716.110.612.013.1
Meat and poultry12.119.210.04.94.35.06.68.712.2
Alcoholic beverages and tobacco6.43.53.17.65.84.25.25.56.7
Clothing and footwear4.96.89.01.73.82.73.23.23.0
Housing3.814.43.01.41.22.83.56.37.3
Fuel and power1.98.716.23.0-3.21.33.07.16.8
Household goods8.19.88.31.41.71.11.61.81.6
Medical care3.810.30.70.50.50.52.73.83.8
Transport and communications17.911.38.5-2.0-2.7-1.4-0.66.27.5
Personal transport15.712.08.8-2.2-3.0-1.6-0.96.37.4
Public transport1.810.58.12.32.92.74.17.311.9
Communications0.4-0.61.2-5.1-5.1-1.3-1.30.00.0
Recreation, education, and printed matter4.76.92.62.93.02.62.12.72.6
Personal care and effects4.28.38.17.54.11.22.67.814.7
Total100.08.68.84.74.73.54.25.67.7
Core 1/60.37.55.52.52.11.82.13.14.0
Noncore39.711.014.68.08.65.97.39.213.0
Source: Data provided by the Lao P.D.R. authorities.

The core CPI is defined as excluding raw food (rice, meat and poultry, fish, fruit, vegetables), water charges, electricity, and fuel.

Source: Data provided by the Lao P.D.R. authorities.

The core CPI is defined as excluding raw food (rice, meat and poultry, fish, fruit, vegetables), water charges, electricity, and fuel.

Table 5.Lao P.D.R.: General Government Operations, 2002/03–2007/08
Budget
2002/032003/042004/052005/062006/072007/08
(In billions of kip)
Revenue and grants2,7983,1043,8864,9626,0156,331
Revenue2,3452,8223,3874,2665,3415,762
Of which: Resource revenue 1/0642394318651,300
Nonresource revenue2,2772,7583,1493,8354,4764,462
Tax1,9282,3372,8033,6414,7214,970
Nontax417484584625620792
Grants453283499696674569
Expenditure4,0183,9535,2026,2627,0667,974
Current1,5271,8382,5173,1243,5264,565
Wages, salaries, and benefits6689001,0581,2631,5892,062
Transfers3413095146747221,111
Interest payments123235318277198361
Of which: External115194267244161291
Other recurrent3943946269111,0171,030
Capital and onlending 2/2,3701,6462,2612,5292,8562,824
Others and contingencies 3/120237347348586585
Discrepancy (including unidentified expenditure)123278261980
Overall balance-1,220-849-1,316-1,300-1,051-1,643
Nonresource balance 4/-1,288-913-1,555-1,731-1,915-2,943
Financing1,2208491,3161,3001,0511,643
Domestic financing (net) 5/111-7562-369-433279
Foreign financing (net)1,1089231,2541,6701,4841,363
(In percent of GDP)
Revenue and grants13.012.113.214.615.714.6
Revenue10.911.011.512.514.013.3
Of which: Resource revenue 1/0.00.30.81.32.33.0
Nonresource revenue10.610.810.711.311.710.3
Tax8.99.19.510.712.311.5
Nontax1.91.92.01.81.61.8
Grants2.11.11.72.01.81.3
Expenditure18.615.517.618.418.518.4
Current7.17.28.59.29.210.5
Wages, salaries, and benefits3.13.53.63.74.24.8
Transfers1.61.21.72.01.92.6
Interest payments0.60.91.10.80.50.8
Of which: External0.50.80.90.70.40.7
Other recurrent1.81.52.12.72.72.4
Capital and onlending 2/11.06.47.77.47.56.5
Others and contingencies 3/0.60.91.21.01.51.4
Discrepancy (including unidentified expenditure)0.00.90.30.80.30.0
Overall balance-5.7-3.3-4.5-3.8-2.7-3.8
Nonresource balance 4/-6.0-3.6-5.3-5.1-5.0-6.8
Financing5.73.34.53.82.73.8
Domestic financing (net) 5/0.5-0.30.2-1.1-1.10.6
Foreign financing (net)5.13.64.34.93.93.1
Memorandum item:
GDP at current market prices (in billions of kip)21,54825,56129,49834,01538,26243,287
Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Resource revenue comprises royalties, taxes, and dividends from the mining and hydropower sectors.

Onlending includes gross repayments of funds.

Includes payments on liabilities carried over from the previous budget years and arrears clearance.

Overall balance net of resource revenue.

Excludes bank restructuring bonds.

Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Resource revenue comprises royalties, taxes, and dividends from the mining and hydropower sectors.

Onlending includes gross repayments of funds.

Includes payments on liabilities carried over from the previous budget years and arrears clearance.

Overall balance net of resource revenue.

Excludes bank restructuring bonds.

Table 6.Lao P.D.R.: General Government Revenue, 2002/03–2007/08
Budget
2002/032003/042004/052005/062006/072007/08
(In billions of kip)
Revenue2,3452,8223,3874,2665,3415,762
Tax1,9282,3372,8033,6414,7214,970
Direct tax3654015226931,1701,364
Profit tax2252223074599191,149
Mining sector00073477896
Hydropower sector0045423936
Others225222263344403216
Income tax140179215234252214
Indirect tax1,5621,9362,2812,9483,5503,606
Turnover tax4665946738871,0461,095
Excise tax2934835238009991,179
Import duties316351429515573536
Royalties286289341447529468
Natural resource tax 1/233295218274253
Hydropower royalties453257574365
Timber royalties218225189172212150
Other201218315299404329
Nontax417484584625620792
Dividends87106178175157238
Of which: Mining and hydropower sectors0042423264
Overflight revenues174198222229231230
Other156180185222232324
(In percent of GDP)
Revenue10.911.011.512.514.013.3
Tax8.99.19.510.712.311.5
Direct tax1.71.61.82.03.13.2
Profit tax1.00.91.01.32.42.7
Mining sector0.00.00.00.21.22.1
Hydropower sector0.00.00.20.10.10.1
Others1.00.90.91.01.10.5
Income tax0.60.70.70.70.70.5
Indirect tax7.27.67.78.79.38.3
Turnover tax2.22.32.32.62.72.5
Excise tax1.41.91.82.42.62.7
Import duties1.51.41.51.51.51.2
Royalties1.31.11.21.31.41.1
Natural resource tax 1/0.10.10.30.60.70.6
Hydropower royalties0.20.10.20.20.10.2
Timber royalties1.00.90.60.50.60.3
Other0.90.91.10.91.10.8
Nontax1.91.92.01.81.61.8
Dividends0.40.40.60.50.40.5
Of which: Mining and hydropower sectors0.00.00.10.10.10.1
Overflight revenues0.80.80.80.70.60.5
Other0.70.70.60.70.60.7
Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Mining royalties.

Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Mining royalties.

Table 7.Lao P.D.R.: General Government Expenditure, 2002/03–2007/08
Budget
2002/032003/042004/052005/062006/072007/08
(In billions of kip)
Expenditure 1/4,0173,7215,1246,0016,9687,974
Current1,5271,8382,5173,1243,5264,565
Wages, salaries, and benefits6689001,0581,2631,5892,062
Salaries4937068691,0171,2171,522
Remuneration175194190245372541
Transfers3413095146747221,111
Allowances and social welfare172204317387
Subsidies and transfers169105196287
Interest payments123235318277198361
Domestic94151323770
External115194267244161291
Other recurrent3943946269111,0171,030
Capital and onlending2,3701,6462,2612,5292,8562,824
Domestically financed1,026592468403541750
Externally financed and onlending (net) 2/1,3431,0541,7932,1262,3142,074
Others and contingency 3/120237347348586585
(In percent of GDP)
Expenditure 1/18.614.617.417.618.218.4
Current7.17.28.59.29.210.5
Wages, salaries, and benefits3.13.53.63.74.24.8
Salaries2.32.82.93.03.23.5
Remuneration0.80.80.60.71.01.2
Transfers1.61.21.72.01.92.6
Allowances and social welfare0.80.81.11.1
Subsidies and transfers0.80.40.70.8
Interest payments0.60.91.10.80.50.8
Domestic0.00.20.20.10.10.2
External0.50.80.90.70.40.7
Other recurrent1.81.52.12.72.72.4
Capital and onlending11.06.47.77.47.56.5
Domestically financed4.82.31.61.21.41.7
Externally financed and onlending (net) 2/6.24.16.16.26.04.8
Others and contingency 3/0.60.91.21.01.51.4
Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Excludes discrepancy shown in Table 5.

Onlending includes gross repayments of funds.

Includes payments on liabilities carried over from the previous budget years and arrears clearance.

Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Excludes discrepancy shown in Table 5.

Onlending includes gross repayments of funds.

Includes payments on liabilities carried over from the previous budget years and arrears clearance.

Table 8.Lao P.D.R.: Monetary Survey, 2004–08 1/
20042005200620072008
Dec.Dec.Dec.Mar.Jun.Sep.Dec.Mar.
(In billions of kip; end of period)
Net foreign assets3,3223,3894,9125,8296,7487,2357,8109,086
Bank of Lao P.D.R.1,9892,2502,9843,5624,1884,4614,8335,846
Commercial banks1,3331,1391,9282,2672,5602,7732,9763,240
Net domestic assets1,7072,0272,1342,1311,3951,6321,9642,095
Domestic credit2,4662,6892,5282,1041,9042,5162,8912,336
Net claims on government-210-191-89-316-653-409-275-1,311
Credit to the economy2,6762,8802,6172,4202,5572,9253,1663,647
Of which: Kip4045587097027769491,1151,376
Private sector1,6772,1442,0611,9322,0032,3972,6543,073
State-owned enterprises999736556488554527513575
Other items (net)-759-662-39427-509-884-927-241
Broad money5,0295,4167,0467,9608,1448,8679,77411,181
Of which: Kip1,9462,2582,9433,2583,3883,8024,4504,783
Money1,0491,4151,9982,2442,2582,5423,0653,215
Currency outside banks (kip)5118051,2311,3891,4231,5221,8381,884
Demand deposits (kip)5376107688568361,0211,2271,331
Quasi-money3,9804,0015,0485,7165,8856,3256,7107,966
Time and savings deposits (kip)8978439451,0141,1301,2601,3851,568
Foreign currency deposits3,0833,1594,1034,7024,7565,0655,3246,398
(Annual percentage change, unless otherwise indicated)
Domestic credit6.19.0-6.0-22.4-30.1-5.914.411.1
Credit to the economy9.07.6-9.1-15.6-15.5-1.321.050.7
Private sector13.327.8-3.9-9.8-9.19.028.859.1
State-owned enterprises2.5-26.2-24.5-32.7-32.7-30.9-7.817.7
Broad money22.87.730.143.144.745.438.740.5
Of which: Kip33.216.030.441.449.158.651.246.8
Memorandum items:
Money multiplier3.33.02.82.92.82.72.52.8
Loan/deposit (in percent)43.954.637.933.934.438.238.240.4
Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Valued at current exchange rates.

Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Valued at current exchange rates.

Table 9.Lao P.D.R.: Balance Sheet of the Bank of Lao P.D.R., 2004–08 1/
20042005200620072008
Dec.Dec.Dec.Mar.Jun.Sep.Dec.Mar.
(In billions of kip; end of period)
Net foreign assets (NFA)1,9892,2502,9843,5624,1884,4614,8335,846
Foreign assets2,3812,5753,2583,8284,4464,7205,0806,076
Foreign liabilities-392-325-273-266-258-259-247-230
Net domestic assets (NDA)-444-426-482-825-1,261-1,198-860-1,814
Net domestic credit409144108-251-642-515-103-1,181
Net claims on government-451-433-282-643-1,043-911-456-1,638
Of which: Foreign currency-353-501-642-791-1,023-1,012-1,007-1,981
Claims on government186261620441352431907910
Government deposits-637-694-902-1,084-1,394-1,341-1,363-2,548
Other claims860577390392401395353457
Of which: Foreign currency747373257250208243198272
Claims on state-owned enterprises575228176166168158161142
Claims on private sector1541277067676700
Claims on other banking institutions131222143159166170192315
Other items (net)-853-571-590-573-619-683-757-633
Government lending funds-357-340-276-265-267-258-261-236
Other items-496-231-314-308-352-425-496-397
Reserve money1,5451,8232,5022,7372,9273,2633,9744,032
Of which: Kip8761,1811,8031,9432,0592,3252,9682,941
Currency in circulation5118051,2311,3891,4231,5221,8381,884
Vault cash8172106169194199226318
Bank deposits9539471,1651,1801,3101,5431,9101,830
Of which: Kip132145315215272445737565
Required reserves (kip and foreign currency) 2/525562588630680668
Kip84929510311696
Foreign currency441470494527564572
Excess reserves (clearing deposits held in kip)132145231123178342621469
Other deposits (held in foreign currency)821802410494544571608693
Capital deposits152159152170170159166174
Clearing deposits666643258324375412442518
Private sector demand deposit30000000
(In millions of U.S. dollars, unless otherwise indicated)
NFA of BOL (a)190.1208.2307.8370.5437.0463.5512.9664.6
Foreign exchange component of reserve money (b)63.959.572.182.690.697.5106.7124.0
Net official international reserves (= (a) - (b))126.1148.7235.7287.8346.4366.0406.2540.6
Reserve money (y/y, percent change)12.918.037.247.151.651.658.847.3
Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Valued at current exchange rates.

For 2004 and 2005, required reserves are included in clearing deposits.

Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Valued at current exchange rates.

For 2004 and 2005, required reserves are included in clearing deposits.

Table 10.Lao P.D.R.: Summary Balance Sheet of Commercial Banks, 2004–08 1/
20042005200620072008
Dec.Dec.Dec.Mar.Jun.Sep.Dec.Mar.
(In billions of kip; end of period)
Net foreign assets1,3331,1391,9282,2672,5602,7732,9763,240
Of which: State-owned commercial banks (SOCBs)9846261,3121,6591,7911,7301,8971,994
Foreign assets2,3212,3063,2143,5893,9004,2414,3954,699
Foreign liabilities-989-1,167-1,286-1,322-1,339-1,467-1,419-1,459
Net domestic assets3,1843,4723,8884,3044,1614,5724,9606,057
Of which: SOCBs1,5292,0431,7891,6061,5251,6381,8292,059
Reserves9899631,2651,6521,5141,7742,1622,952
Of which: SOCBs5314807061,0428819451,1861,900
Claims on government (net)241241193327390501180327
Of which: SOCBs1771187620127033360185
Claims on government356464549621751909797675
Government deposits-115-223-356-294-361-407-617-347
Claims on the economy1,9472,5252,3702,1872,3222,6993,0063,505
Of which: SOCBs1,0351,5261,1841,0011,1141,4401,6721,983
Claims on state-owned enterprises423508380322386369352432
Of which: SOCBs27732695581199654106
Claims on private sector1,5242,0171,9901,8641,9362,3302,6543,073
Of which: SOCBs7571,2001,0899429951,3441,6181,877
Credit from monetary authorities-98-150-165-172-219-219-175-205
Of which: SOCBs-29-80-17-16-16-15-15-14
Other items (net)106-107224311154-183-214-522
Of which: Capital account-47-192-159-227-452-563-684-785
Deposits4,5174,6125,8156,5716,7217,3457,9369,297
Of which: SOCBs3,1933,1863,8664,4924,4514,6314,9586,125
Kip deposits1,4351,4531,7121,8701,9652,2812,6122,899
Of which: SOCBs1,0289771,1211,2641,2711,4271,6281,827
Current deposits5376107688568361,0211,2271,331
Time and savings deposits8978439451,0141,1301,2601,3851,568
Foreign currency deposits3,0833,1594,1034,7024,7565,0655,3246,398
Of which: SOCBs2,1652,2092,7453,2293,1803,2043,3294,298
(In billions of U.S. dollars; end of period)
Net foreign assets127105199236267288316368
Of which: SOCBs9458135173187180201227
Foreign currency deposits295292423489496526565727
Of which: SOCBs207204283336332333353489
Memorandum items:
Issuance of debt clearance bonds, accumulative stocks (in kip billions)244.2244.2443.9443.9443.9694.1694.1694.1
Net foreign assets coverage of foreign currency deposits (in percent)43.236.147.048.253.854.855.950.6
Of which: SOCBs45.528.347.851.456.354.057.046.4
Reserves to deposits ratio (in percent)21.920.921.825.122.524.227.231.7
Of which: SOCBs16.615.118.323.219.820.423.931.0
Exchange rate (kip/US$, end of period)10,46510,8059,6969,6159,5839,6269,4238,797
Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Valued at current exchange rates.

Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Valued at current exchange rates.

Table 11.Lao P.D.R.: Interest Rates, 2002–08(In percent; end of period)
2002200320042005200620072008
Jan.Feb.Mar.Apr.
Local banks (representative rates) 1/
Deposit rates
Savings (U.S. dollar accounts)1.00.40.30.51.31.31.31.31.31.3
Fixed (U.S. dollar accounts)
3 months1.50.50.41.01.81.81.81.81.81.8
6 months1.80.60.81.32.52.52.52.52.52.5
12 months2.30.81.01.53.03.03.03.03.03.0
Savings (kip accounts)15.012.05.03.03.03.03.03.03.03.0
Fixed (kip accounts)
3 months17.015.08.05.06.06.06.06.06.06.0
6 months19.018.09.08.08.08.08.08.08.08.0
12 months21.020.010.09.010.010.010.010.010.010.0
Lending rates
1 year
Kip14.015.513.012.012.012.012.012.0
Baht7.07.09.58.07.07.07.07.07.0
U.S. dollar6.07.09.59.07.07.07.07.07.0
1-3 year
Kip16.015.513.013.013.013.013.013.0
Baht8.09.09.58.07.57.57.57.57.5
U.S. dollar7.59.09.59.07.57.57.57.57.5
Overdraft
Kip24.028.021.020.020.020.020.020.020.020.0
Baht10.012.012.012.012.010.010.010.010.010.0
U.S. dollar11.011.012.012.012.012.012.012.012.012.0
Foreign banks (representative rates) 2/
Deposit rates
Savings (U.S. dollar accounts)0.50.30.30.30.50.50.50.50.50.5
Fixed (U.S. dollar accounts)
3 months1.00.50.50.50.80.80.80.80.80.8
6 months1.00.50.50.5
12 months2.00.80.80.8
Lending rates
1-3 year
Kip21.016.016.016.016.016.016.0
Baht13.08.08.08.08.08.08.0
U.S. dollar10.57.07.07.07.07.07.0
Overdraft
Kip22.022.022.022.022.022.022.022.022.022.0
Baht14.013.013.013.016.016.016.016.016.016.0
U.S. dollar11.010.510.510.512.012.012.012.012.012.0
Source: Data provided by the Lao P.D.R. authorities.

Local banks’ representative rates are from Banque pour le Commerce Exterieur Lao.

Foreign banks’ representative rates are from Thai Military Bank Branch.

Source: Data provided by the Lao P.D.R. authorities.

Local banks’ representative rates are from Banque pour le Commerce Exterieur Lao.

Foreign banks’ representative rates are from Thai Military Bank Branch.

Table 12.Lao P.D.R.: Balance of Payments, 2002–07(In millions of U.S. dollars, unless otherwise indicated)
200220032004200520062007
Est.
Current account-228-324-423-511-368-716
Excluding official transfers-266-367-459-545-453-769
Merchandise trade balance-359-368-520-586-446-911
Exports, f.o.b.3634185366841,1431,203
Imports, c.i.f.7227861,0561,2701,5892,114
Services (net)13999132158153256
Income (net)-68-121-97-145-218-165
Of which: Interest payments-38-62-77-86-74-93
Of which: Public debt-10-12-21-23-17-25
Transfers (net)61666262144104
Private232426285951
Official384236348553
Capital account284342441530467919
Medium- and long-term loans7810189125130149
Disbursements105129114153162186
Amortization-27-28-25-28-32-36
Foreign direct investment 1/639315247335710
Net foreign assets of commercial banks (increase -)-14-20-3818-74-130
Other private flows and errors and omissions1562527613977190
Overall balance56181919100203
Financing-56-18-19-19-100-203
Central bank net foreign assets-56-18-19-19-100-203
Assets (increase -)-62-18-12-11-98-201
Liabilities (reduction -)70-6-7-2-2
Memorandum items:
Current account (in percent of GDP)-12.5-15.1-16.9-17.8-10.5-17.4
Excluding official transfers-14.5-17.1-18.3-19.0-12.9-18.7
Gross official reserves196216228238336537
In months of prospective nonresource imports 2/2.83.12.72.43.03.7
In months of goods and services imports2.82.32.11.71.82.4
GDP at current market prices1,8302,1492,5092,8663,4984,108
Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Includes repayment of private debt.

Excludes imports associated with large resource (mining and hydropower) projects.

Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Includes repayment of private debt.

Excludes imports associated with large resource (mining and hydropower) projects.

Table 13.Lao P.D.R.: Merchandise Trade by Major Commodity, 2002–07(In millions of U.S. dollars, unless otherwise indicated)
200220032004200520062007
Est.
Merchandise exports362.8418.0536.0684.01,143.11,202.6
Gold0.060.157.890.7117.993.2
Copper0.00.00.0112.1409.3446.0
Electricity101.1114.5117.5125.0122.6114.1
Timber114.3128.2144.9156.2195.6179.0
Garments113.9129.9154.7138.0127.5126.3
Coffee10.911.214.47.59.828.9
Other22.734.246.253.3149.9205.5
Merchandise imports722.2786.11,055.81,270.21,589.32,113.8
Petroleum83.689.6116.9159.5205.5311.0
Capital goods197.1258.3452.8488.8684.41,053.2
Electricity7.28.420.126.228.037.4
Garments materials79.986.6115.569.998.780.3
Other354.4343.1350.5525.7572.7631.9
Memorandum items:
Export volume (percent change)-12.6-9.119.314.018.7-0.9
Import volume (percent change)-2.62.533.112.916.424.3
Terms of trade (percent change)8.516.16.74.126.9-0.4
Gold volume (’000 ounces)0.0165.3141.2203.8195.1133.8
Copper volume (’000 metric tons)0.00.00.030.560.862.5
Electricity exports (giga-watt hours)2,7512,2852,4242,9882,8072,528
Electricity imports (giga-watt hours)146211199229
Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.
Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.
Table 14.Lao P.D.R.: Composition of Net Services and Net Foreign Income, 2002-07(In millions of U.S. dollars, unless otherwise indicated)
200220032004200520062007
Est.
Services (net)138.698.7131.8158.2152.8256.2
Receipts (+)182.9150.8186.9219.0215.0322.1
Transportation29.821.029.731.331.530.1
Tourism113.487.3118.9146.8149.3233.3
Communications14.715.616.516.510.228.7
Insurance1.02.22.65.23.27.2
Other24.024.719.219.220.822.8
Payments (-)44.352.155.160.962.265.9
Transportation5.76.06.57.37.26.5
Travel13.513.514.716.78.98.4
Communications4.44.45.05.02.74.1
Insurance1.84.34.85.412.42.0
Construction14.316.516.819.024.438.7
Other4.67.47.37.56.66.2
Foreign income (net)-67.8-121.1-97.1-144.7-218.5-165.1
Receipts (+)4.79.624.430.3104.2162.1
Income from royalty0.06.111.925.388.0129.3
Interest receipts4.02.811.74.212.026.6
Interest on Bank of Lao P.D.R. reserve assets1.91.94.23.18.922.6
Interest on commercial banks nostro accounts2.10.97.51.13.04.0
Payments to Lao P.D.R. workers by embassies0.70.70.80.84.26.2
Payments (-)72.5130.6121.5175.1322.7327.3
Income from direct investment in Lao P.D.R.33.767.344.488.4243.4228.4
Interest payments38.461.776.685.873.892.8
Public10.011.922.525.516.828.5
Interest on official borrowing9.711.922.425.316.828.5
Interest on Bank of Lao P.D.R. foreign liabilities0.20.00.10.20.00.0
Private28.549.954.160.357.064.4
Interest on commercial banks foreign liabilities2.63.24.54.35.15.1
Interest payable on other private debt25.946.749.656.051.959.3
Payments to foreign workers in Lao P.D.R. embassies0.41.60.50.85.46.0
Memorandum items:
Number of tourist arrivals (in thousands)7366368951,0951,2151,624
(Percent change)9.2-13.540.622.410.933.6
Sources: Data provided by the Lao P.D.R. authorities; Lao National Tourism Administration; and IMF staff estimates.
Sources: Data provided by the Lao P.D.R. authorities; Lao National Tourism Administration; and IMF staff estimates.
Table 15.Lao P.D.R.: External Aid and Loan Disbursements, 2002-07(In millions of U.S. dollars)
200220032004200520062007
Est.
Grants 1/38.042.436.233.985.052.7
Bilateral33.442.433.019.353.935.2
Program grants12.012.312.65.412.70.0
Project grants21.430.120.413.941.235.2
Multilateral4.60.03.214.631.117.6
International Development Association (IDA)0.00.02.613.728.013.5
Asian Development Bank (AsDB)0.20.00.40.83.14.0
Other (including NGOs)4.40.00.10.00.00.0
Loan disbursements105.1128.9113.8152.6161.6185.5
Program loans5.022.012.34.410.05.7
IDA0.07.012.34.40.00.0
AsDB5.015.00.00.010.05.7
Project loans100.1106.9101.5148.2151.6179.8
Multilateral92.091.991.8129.2129.9101.5
IDA47.839.627.527.629.029.6
AsDB35.946.051.873.467.257.0
International Fund for Agricultural Development5.53.03.83.95.74.8
Organization of the Petroleum Exporting Countries1.81.92.61.70.32.7
Nordic Fund1.11.46.01.24.37.4
European Union0.00.00.021.323.50.0
Bilateral8.015.09.719.021.878.3
Japan0.00.32.33.71.80.0
China0.00.00.00.00.030.7
Thailand0.04.52.511.313.125.9
Other8.010.24.94.16.921.7
Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Includes project-related and general technical assistance.

Includes borrowing for Theun Hinboun and Huay Ho hydropower projects from bilateral creditors.

Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Includes project-related and general technical assistance.

Includes borrowing for Theun Hinboun and Huay Ho hydropower projects from bilateral creditors.

Table 16.Lao P.D.R.: Debt Stock and Debt Service 2002–07
200220032004200520062007
Est.
(In millions of U.S. dollars)
Total debt stock (public and private)2,3152,4132,6483,0283,3984,293
Public debt1,9312,0262,1052,2032,3082,446
Bilateral519523536544551626
Multilateral1,2891,3631,4511,5331,6301,704
Commercial 1/123140117127127116
Private debt 2/3843875448251,0901,847
Total debt service85.992.1122.3135.8177.9212.2
Amortization50.355.670.377.8132.9147.2
Public debt26.728.229.137.532.047.6
Bilateral3.91.82.34.13.42.6
Multilateral22.926.422.423.928.633.8
Commercial0.00.04.49.50.011.2
Private debt23.527.441.240.3100.999.5
Interest payments35.636.552.058.045.065.0
Public debt9.711.922.525.516.828.5
Bilateral1.10.74.99.45.011.2
Multilateral8.711.216.013.711.813.8
Commercial0.00.01.52.40.03.5
Private debt25.924.629.632.528.236.6
(In percent of GDP)
Total debt stock (public and private)126.5112.3105.6105.797.1104.5
Public debt105.594.383.976.966.059.5
Bilateral70.563.457.853.546.641.5
Multilateral28.424.321.419.015.715.2
Commercial6.76.54.74.43.62.8
Private debt21.018.021.728.831.245.0
Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Includes direct borrowing by and on-lent funds to state-owned enterprises on noncessional terms.

Mainly for the mining and hydropower sectors.

Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Includes direct borrowing by and on-lent funds to state-owned enterprises on noncessional terms.

Mainly for the mining and hydropower sectors.

Table 17.Lao P.D.R.: Foreign Investment Approvals by Country and Sector, 2002-07 1/
2002200320042005200620072002-07
1. By country(In millions of U.S. dollars)
Thailand6.396.357.2450.9655.292.71,358.8
China62.6119.928.258.1423.2496.11,188.0
Vietnam6.98.763.343.3261.2155.9539.2
France13.417.62.5370.312.113.1429.0
Japan0.43.34.54.4401.56.1420.3
India0.10.20.00.0350.00.0350.3
Australia0.51.5292.721.31.413.6331.0
Korea12.813.714.210.2163.782.2296.9
Malaysia4.970.83.33.43.253.2138.6
Singapore0.736.23.21.243.515.9100.6
Others24.597.864.1282.3384.7208.11,061.5
Total133.0466.0533.11,245.32,699.71,136.96,214.1
(In percent of total)
Thailand4.820.710.736.224.38.221.9
China47.025.75.34.715.743.619.1
Vietnam5.21.911.93.59.713.78.7
France10.03.80.529.70.41.26.9
Japan0.30.70.80.414.90.56.8
India0.10.00.00.013.00.05.6
Australia0.40.354.91.70.11.25.3
Korea9.62.92.70.86.17.24.8
Malaysia3.615.20.60.30.14.72.2
Singapore0.57.80.60.11.61.41.6
Others18.421.012.022.714.218.317.1
2. By sector(In millions of U.S. dollars)
Electricity generation1.085.85.51,065.31,776.7360.53,294.8
Agriculture14.017.375.717.4458.5183.8766.7
Mining0.520.7312.193.573.8115.3616.0
Industry and handicraft59.980.835.414.6123.0134.2447.9
Services16.560.317.520.912.1181.2308.4
Trading4.7140.119.07.986.013.9271.6
Construction13.93.210.01.6130.60.0159.3
Hotel and restaurant1.148.87.013.132.258.2160.4
Other activities21.38.951.011.26.789.8188.9
Total133.0466.0533.11,245.32,699.71,136.96,214.1
(In percent of total)
Electricity generation0.818.41.085.565.831.753.0
Agriculture10.53.714.21.417.016.212.3
Mining0.44.458.57.52.710.19.9
Industry and handicraft45.117.36.61.24.611.87.2
Services12.412.93.31.70.415.95.0
Trading3.530.13.60.63.21.24.4
Construction10.50.71.90.14.80.02.6
Hotel and restaurant0.910.51.31.11.25.12.6
Other activities16.01.99.60.90.27.93.0
Sources: Lao P.D.R., Ministry of Investment and Planning; and IMF staff estimates.

Approvals of foreign direct investment (FDI). Differs from actual FDI recorded in the balance of payments.

Sources: Lao P.D.R., Ministry of Investment and Planning; and IMF staff estimates.

Approvals of foreign direct investment (FDI). Differs from actual FDI recorded in the balance of payments.

Lao P.D.R.: Summary of Tax System
TaxNature of TaxExemptions and DeductionsRates (in percent, unless otherwise indicated)
1.Taxes on income and profits
1.1Tax on enterprise profits (profit tax)Annual levy on profits derived in the Lao P.D.R. by enterprises from business operations (production, trade, and service), payable in advance on a quarterly basis.a. Expenses normally incurred in producing income, with limits for reception and travel costs.

b. Asset amortization permitted, using either fixed line or declining balance methods and with the following five annual rates: 50 percent: business formation; 20 percent: land transport, machine, and other equipment; 10 percent: sea transport equipment, office improvement and supplies, and temporary trade premises; 5 percent: air transport equipment, industrial premises used < 20 years, and permanent trade premises; 2.5 percent: industrial premises used between 21-40 years. Unallowed residual is deducted from the sale price to compute the profit or loss.

c. Carry-forward of losses available for up to three years.

d. Three computational regimes. Full real regime: based on an extended accounting system for foreign investors, import-export traders, and businessmen with annual turnover greater than kip 2,400 million; partial real regime: based on an ordinary or common accounting system, for other businessmen with annual turnover of kip 200-2,400 million; contract regime: based on a primary accounting system, with an agreed estimation for turnover of less than kip 200 million with progressive rates for trade (5 percent), production, construction, and transport (8-10 percent), and services and drinking bars (20 percent).

e. Amounts appropriated for savings or recapitalization accounts, bonuses, meeting allowances, or received from capital reduction, enterprise merging, share transfer, bankruptcy, or debt liquidation.

f. Case-by-case tax relief under foreign and domestic investment promotion law.
General rate35
Discount rates
• For enterprises in designated areas/city20
• For enterprises in rural and lowland areas15
• For enterprises in mountain and remote areas10
For foreign investors, discount rates apply only to the sectors under the foreign investment promotion law.
1.2Minimum profit taxApplicable to gross turnover of the previous year of those enterprises subject to the extended or ordinary accounting system. Payment on an annual basis. Creditable against final profit tax liability, but no reimbursement of overpayment.Foreign and domestic investors who qualify for annual profit tax exemption.
Domestic production0.25
Other businesses1
1.3Tax on social/religious/cultural organizations and associationsIncomes from immovable property leasing and non-business activities of public or other social associations.None.10
1.4Tax on personal income from employmentLevied on wages, salaries, bonuses, and other emoluments derived from employment in Lao P.D.R. or, when deputed to international organizations, by Lao citizens receiving emoluments abroad on which they are not taxed. Withheld at source by the employer on a monthly basis.All persons with monthly wages or salaries below kip 300,000.

Exemptions are granted to a selected list of income/earning activities, including income from agricultural production by peasants.
Monthly Wage or Salary
(In kip)
300,001–1,500,0005
1,500,001–4,000,00010
4,000,001–8,000,00015
8,000,001–15,000,00020
15,000,001 and above25
1.5Tax on personal incomes of persons in self-employmentLevied on net profits made by individuals from business operations and immovable property leasing. Payment on an advance quarterly basis.Less than kip 2,400,001 is exempt.
General Activities
(In kip)
2,400,001–5,000,00010
5,000,001–10,000,00015
10,000,001–30,000,00020
30,000,001–60,000,00030
60,000,000 and above35
1.6Tax on personal incomes from immovable property leasingLevied on incomes received by individuals from immovable property leasing.15 (of rent price)
1.7Tax on investment incomeLevied on incomes of businesses and individuals from gross market-based rents, dividends, lending interest rates, and guarantee fees on a global basis, where appropriate.Interest on bank deposits.10
1.8Tax on property rightsCopyright or other intellectual property rights of an individual or business entity.None.5
2.Taxes on land and property
2.1Transfer taxesApplied to the market value of real estate property transferred between private persons through inheritance, sale, or gift.None.Transfers between:
• Direct descendants0.5
• Second-degree relatives1.0
• Third-degree relatives2.0
• Other land and houses3.0
2.2Land tax
Annual tax levied on land area.
Taxable land is divided in two categories:
  • Occupied land (i.e., land occupied by buildings and factories)

  • Agricultural land

  • Land occupied by temples, public welfare buildings, embassies, and housing for disabled persons (for extensions of less than 5,000 square meters).

  • Agricultural land, not exceeding two hectares per family, occupied by disabled military personnel and civilians.

  • Agricultural land situated in mountainous areas yielding less than 150 kilograms of rice per person per year.

  • Agricultural land affected by natural disaster or other damages.

  • Newly cleared rice fields in mountainous areas (5 years) and flat land (3 years).

  • Industrial orchards (2-3 years).

1. Occupied land
Rates vary from kip 5 to kip 300 per square meter per year in accordance with the use (housing, production factories, business or service, and unused open land) and location.
2. Agricultural land
Rates vary from kip 20,000 to kip 45,000 per hectare per year in accordance with: (i) land use (rice land, garden land, and farm land); (ii) location (level field and mountainous areas); and (iii) type of production (for rice or garden, by number of crops per year, and by type of trees).
3.Taxes on goods and services
3.1Turnover taxThe tax is collected from imports of goods to the Lao P.D.R, first time sale of imported goods, or domestically produced goods and general services



Importers, producers, or service providers who operate inside Lao P.D.R. have the right to get a deduction of initially paid (e.g., at customs checkpoints) turnover tax. Deductions are not allowed for service charges and for purchases of transport vehicles, including accessories and spare parts, that are not used directly by the companies, and for purchases of consumer goods for personal use by companies.



All imports not exempt from import duties are subject to turnover tax. The base of taxation is the customs value, plus customs duty, plus excise duty, if any. In case of first time sale of goods imported or manufactured inside the country, the turnover tax shall be calculated during its selling or delivery by importers or domestic manufacturers. The calculation shall be based on the actual sales amount without turnover tax.



The tax on services shall be calculated after completion of the work. The calculation shall be based on actual service charges without turnover tax.



Turnover tax declarations must be submitted monthly and turnover tax collected must be paid monthly (turnover tax on imports is collected at custom checkpoints). All purchases and sales must be substantiated by tax invoices.
The following activities are exempt from turnover tax:
  • Import of crop seeds, animal breeds, and insecticides.

  • Import of materials, instruments, and chemical components for research purposes.

  • Import of gold for notes-issuing institution, and of bank notes or coins.

  • Import or activity relating to tax or postal stamps.

  • Import of planes, instruments, and components for international air transportation.

  • Import of goods for selling to diplomats and international organizations in the Lao P.D.R. as permitted by the Ministry of Foreign Affairs.

  • Import of goods with tax exemption or for temporary import.

  • Import and sales of animal-treating medicines.

  • Export of goods and services.

  • Sales of self-produced agricultural products by peasants.

  • Forestation activities, industrial trees and fruits planting.

  • Sales of agricultural and handicraft products by government employees or cooperative members on a family basis.

  • Sales of authorized text books and of newspapers and magazines.

  • International transportation and relevant services (transport of passengers or cargoes by land, air, and sea/river).

  • Transport by people and animals by boats without engines.

  • Provision of leasing of immovable properties, such as land, houses, and other structures by persons who do not have business activities.

  • Independent job-occupation by one’s own labor.

  • Educational activities: pre-schools, primary, secondary, and technical schools, and universities.

  • Activities for public benefit held by government authorities or international organizations.

  • Banking and insurance activities.

  • Domestically-produced rice, unprocessed rice, and rice bran.

  • Domestically-produced fertilizer, animal foods, and rice polish.

  • Wheelchairs (for disabled people).

  • Fire trucks, ambulances, and other specified vehicles for official use.

  • Human and animal organs for medical use.

5 or 10
3.2Excise dutiesLevied equally on imported and domestic supplies of petroleum products and select consumer goods. For imported items, excise duty is calculated inclusive of customs duties; for domestically-supplied items, it is calculated based on the ex-factory cost.The following items are exempt:

  • Purchases by embassies and international organizations.

  • Kerosene.

  • Alcohol (90-proof) for medical purposes.

  • Purchases of petroleum products for externally-funded projects.

  • Exports of excisable goods.

Item
Petroleum products:
Premium gasoline25
Regular gasoline24
Diesel12
Kerosene10
Hydraulic, brake, lubricating, and grease oil5
Item
Alcohol:
All types with 15-proof or more70
All types with less than 15-proof60
Beer50
Cigarettes and cigars55
Cosmetics and perfumes30
Playing cards, and the like70
Item
Motor vehicles:
Pickup with two doors20
Pickup with four doors25
Minibus with less than 15 seats25
Bus25
Jeep with soft top30
Jeep with hard top less than 2,000 cc engine65
2,001-4,000 cc70
More than 4,000 cc75
Cars less than 1,000 cc60
1,000-1,500 cc65
1,501-3,000 cc75
More than 3,000 cc90
Motorcycles20
Speed boats, motor boats for sport activities, including their motor and accessories10
Electrical appliances such as air conditioners, satellite TV signal receivers, audio-video cameras and recorders, musical instrument including components and accessories.15
Freezers, heaters, washing machines, vacuum cleaners.10
Billiard, snooker, and football game tables, and other game machines; billiard, bowling, and lottery activities.20
Night club, discotheque, and karaoke activity.25
3.3Tax registration licenseLevied annually on registered industrial and commercial enterprises (based on turnover) and on import-export enterprises (based on capital). Payable during the first three months of the year on a current basis.None.Different charges apply depending on type of enterprise. For local enterprises:
Annual turnover ratesCharge
(In million of kip)(In kip)
0-120
>12-3010,000
>30-8015,000
>80-20030,000
>200-50050,000
>500-1,50070,000
>1,500-2,000100,000
2,000 and above150,000
For import-export enterprises:
Paid-up CapitalCharge
(In million of kip)(In kip)
0-2000
>200-500200,000
>500-1,500300,000
>1,500-2,000400,000
2,000 and above500,000
3.4Road taxLevied annually on all motor vehicles (motorcycles, cars, trucks, etc.).The following items are exempt:
  • Government cars.

  • Cars of the diplomatic corps, international organizations, and foreign experts.

Fees vary according to size of engine (for cars and motorcycles), weight (for trucks), and number of seats (for buses).kip 5,000-90,000
3.5Air travel feesLevied annually for:
  • Civil aviation registration.

  • Examination issuance and renewal of permits.

None.
Fees vary according to weight.US$17-175

US$32-192
3.6Airspace overflight feesLevied on all aircraft without regard to nationality flying over the territory of the Lao P.D.R.
  • VIP special aircraft.

  • Hospital aircraft carrying patients.

US$50-360 per overflight
3.7River transport feesLevied annually.None.
Fees vary according to size of boats.kip 1,000-20,000
3.8Border entry and exit fees
  • Diplomatic corps, foreign experts, and their relatives.

Land and water vehicles.kip 50,000 per vehicle
3.9Fees for extended residence in Lao P.D.R.
  • Diplomatic corps, foreign experts, and their relatives.

Fees vary according to length of stay.kip 5,000-kip 20,000 per day
3.10Fee for temporary border passesNone.kip 12,000
3.11Fees on delivery of passports and visasNone.
Fees vary according to nature of document and applicant:
• Foreigners (for visas)US$10-120
• Lao nationals (for passport delivery)US$20
3.12Consular fees overseasLevied every five years.None.
Fees vary in accordance with the location of the consular office and type of document.US$12-35
4.Taxes on international trade
4.1Import dutiesImposed on an ad valorem basis. The U.S. dollar values are converted into local currency at the market rate.Imports of diplomats and army/police are exempt. Goods imported by the government for use in externally-financed development projects are also exempt; the government otherwise pays duties on its other imports. Imports of fuel by Lao Aviation for international transport is exempt. Also exempt are imports under bilateral grants and for humanitarian purposes (externally funded).

Imported inputs (raw materials, machinery and equipment, building materials) for approved foreign-financed private sector and joint venture investment projects are subject to an import fee of 1 percent. In highly exceptional cases and by specific decision of the government, foreign investors may also be exempt from the 1 percent duty rate because of the large size of their investments and the significant positive impact that those investments are expected to have on the socio-economic development of the country.

Raw materials and intermediate goods imported for the purpose of processing and then re-exported are fully exempt from import duties.

There are no discretionary exemptions. The Minister of Finance does not have the power to grant duty exemptions. There is also no drawback scheme for import duties paid on inputs for exports.

In May 2008, temporary caps were placed on dutiable (c.i.f.) price of petroleum imports, affecting the amount of import duty, excise duty, and turnover tax collected on petroleum products.
Five rates ranging from 5 to 40 percent. The types of goods subject to these rates are as follows:
Raw materials, chemicals (including fertilizers), packaging materials, some machinery (including tractors and tools for agriculture), and essential consumer goods (rice, wheat flour, salt, baby foods, medicines, books and printed materials), cameras.5
Other machinery and spare parts and less essential goods (sugar, cheese, butter, chocolate, footwear, garments, photographic films, refrigerators, dishwashers, household electrical appliances, stereo systems, carpets, pearls and diamonds).10
Selected luxury consumer goods (premium petrol, cosmetics and toiletries, TVs and VCRs, radio cassette players, table games and fun fair articles, buses and minibuses).20
Other luxury consumer goods (prepared meats and fish, cereals and prepared foods, white chocolate confectionery, toilet soaps and deodorants, perfumes, wines and spirits), pickup trucks.30
Soft drinks, liquors, beer, tobacco, detergents, processed wood, jeeps, cars, motorbikes, cigarettes, cigars.40
4.2Export dutiesAll exported finished products produced from raw materials and intermediate components imported free of import duty under Article 17 of the Law on the Promotion and Management of Foreign Investment in the Lao P.D.R. are exempt.Electricity: 20 percent of invoice value; coffee: 5 percent of f.o.b. value; livestock: 5 percent of f.o.b. value; logs: specific rates; saw wood: specific rates; semi-finished wood products (lumber, parquet): 30 percent of f.o.b. value; finished wood products (plywood): 3 percent of f.o.b. value
5.Taxes on timber and other natural resources
5.1Timber royaltiesLevied as fixed dollar amount per cubic meter of timber sold, both for domestic use and export.NoneThe timber royalties are set year by year by the Ministries of Industry and Commerce and Agriculture.
5.2Taxes on natural resourcesLevied in the form of specific duties on the volume of mineral extraction, or ad valorem duties on sale price of mineral products.
Ferrous metals(of sales value)2
Non-ferrous metals2-5
Coal2-3
Construction materials(kip)50
Source: Ministry of Finance.
Source: Ministry of Finance.

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