Buying a car, drinking, and smoking in Laos: How much has the excise tax increased? A table to understand the new rates

在老挝买车喝酒抽烟，消费税涨了多少？一张表看懂新税率

ຊື້ລົດ ດື່ມເຫຼົ້າ ສູບຢາ ຢູ່ລາວ ອາກອນຊົມໃຊ້ເພີ່ມຂຶ້ນເທົ່າໃດ? ຕາຕະລາງດຽວເຂົ້າໃຈອັດຕາອາກອນໃໝ່

Published: 2026-09-05 · LaoPaniti legal guides

Recently, A Sai, a used car dealer in Vientiane, has a headache. He just imported a 2000cc sedan from Japan and was calculating the price when he heard that the excise tax rate had changed again. When customers asked about the price, he could only vaguely say "it's gone up a bit," but he himself couldn't say exactly how much.

In fact, not only cars, but also alcohol, cigarettes, beverages, and game machines—these goods commonly encountered in life and business in Laos—have had their excise tax rates temporarily increased. Today, let's talk in plain language about this "Decree of the President of the Lao People's Democratic Republic on Adjusting Excise Tax Rates on Certain Goods," and see which items have become more expensive and why.

1. Why the sudden tax adjustment?

Article 2 of the Decree states clearly: increasing excise tax on certain goods is to reduce foreign exchange outflow, increase savings, resist extravagance and waste, and ensure that excise tax revenue is fully collected. In simple terms, it makes imported consumer goods that "spend money like water" more expensive, so people buy less, and the country's foreign exchange reserves outflow less.

2. Which goods are "named"?

Article 3 of the Decree lists 6 categories:

1. Vehicles using fuel (only jeeps and sedans)
2. Alcohol or alcoholic beverages
3. Beer
4. Tobacco
5. Finished beverages
6. Coin-operated game machines, various game machines, and legally licensed gambling machines

Note that motorcycles and trucks are not included; only jeeps and sedans.

3. How exactly are the rates adjusted? A table to understand

Article 4 of the Decree provides detailed rates. Let's look at some common ones:

Cars (by engine displacement)

1000cc and below: 31%
Over 1000 to 1600cc: 41%
Over 1600 to 2000cc: 56%
Over 2000 to 2500cc: 68%
Over 2500 to 3000cc: 82%
Over 3000 to 4000cc: 127%
Over 4000 to 5000cc: 200%
Over 5000cc: 220%

Alcohol (by alcohol content)

Over 23%: 110%
23% and below, but over 10%: 90%
Below 10%: 72%

Beer

Alcohol content over 5%: 70%
0.5% to 5%: 60%

Tobacco

Cigars, boxed or packaged cigarettes, and other types of tobacco: 72%
Pipe tobacco: 47%

Finished beverages

Soda, sparkling water, and similar drinks: 12%
Energy drinks: 17%

Game machines

Coin-operated game machines, various game machines, and legally licensed gambling machines: 50%

For example, if you buy an imported sedan with an engine displacement of 3000cc, the excise tax rate is as high as 127%. Adding customs duty and VAT, the final price may more than double. So A Sai's customers complaining that "cars are expensive" is not him overcharging.

4. Are these rates permanent?

No. Article 2 of the Decree clearly states that these rates are temporarily applied until the amendment of the Consumption Tax Law is completed. In other words, the government first raises the rates via administrative order, and later the National Assembly will formally set them through law revision. So for now, buying these goods does carry a heavier tax burden.

If you are also doing related business in Laos, such as importing cars, selling alcohol, or running an arcade, it is advisable to calculate the costs under the new rates and adjust prices accordingly. For a quick check on the tax rate for a specific product, you can directly ask LaoPaniti for free, and get an answer in seconds.

This article is compiled by LaoPaniti for reference only and does not constitute legal advice.

FAQ

I bought a sedan with an engine displacement of 1500cc in Laos. What is the excise tax rate?

According to the Decree, for fuel-powered sedans over 1000cc up to 1600cc, the excise tax rate is 41%. This is a temporary rate until the Consumption Tax Law is amended.

Does this Decree only apply to imported goods? Do locally produced beers in Laos also have to pay this tax?

Article 3 of the Decree only lists the categories of goods, without distinguishing between imported and locally produced. As long as the goods are taxable, such as beer, the corresponding excise tax rate applies regardless of origin. For specifics, consult the Lao tax authorities.

If I run a small shop selling energy drinks in Laos, do I need to pay 17% tax?

Yes, energy drinks fall under finished beverages with an excise tax rate of 17%. However, note that excise tax is usually levied at the production or import stage, and may not be directly reflected at the retail level. It is recommended that you consult a professional accountant to confirm your tax obligations.

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