Buying a Car, Drinking, or Buying Cigarettes: How Exactly is Excise Tax Calculated in Laos? A Presidential Decree Explains the Tax Rates Thoroughly

买车、喝酒、买烟，老挝消费税到底怎么算？一份总统令把税率讲透了

ຊື້ລົດ, ດື່ມເຫຼົ້າ, ຊື້ຢາສູບ, ອາກອນຊົມໃຊ້ຂອງລາວຄິດໄລ່ແນວໃດ? ດຳລັດປະທານປະເທດສະບັບໜຶ່ງອະທິບາຍອັດຕາອາກອນຢ່າງລະອຽດ

Published: 2026-09-16 · LaoPaniti legal guides

Buying a Car, Drinking, or Buying Cigarettes: How Exactly is Excise Tax Calculated in Laos? A Presidential Decree Explains the Tax Rates Thoroughly

"Why is this car so much more expensive than last year?"

Last week, a friend doing business in Laos wanted to trade in for a pickup truck. When he went to the dealership to ask, the price quoted by the salesperson made him gasp. The salesperson explained: it's not that the car price went up, it's that the Excise Tax was adjusted.

In fact, as early as October 9, 2023, Laos issued the "Presidential Decree on Adjusting Excise Tax Rates for Certain Goods," which adjusted the excise tax rates for goods such as vehicles, alcohol, beer, tobacco, beverages, and gaming machines.

Today, we'll explain in plain language the most relevant provisions of this Presidential Decree that affect ordinary people's wallets.

I. Buying a Car: The Larger the Engine Displacement, the More Painful the Tax

According to Article 2 of the Presidential Decree, for vehicles using fossil fuels (limited to jeeps and sedans), the Excise Tax is tiered by engine displacement:

1,000cc and below: 31%
Over 1,000cc to 1,600cc: 41%
Over 1,600cc to 2,000cc: 56%
Over 2,000cc to 2,500cc: 66%
Over 2,500cc to 3,000cc: 82%
Over 3,000cc to 4,000cc: 127%
Over 4,000cc to 5,000cc: 200%
Over 5,000cc: 220%

Simply put, the larger the engine displacement, the higher the Tax Rate. If you want to save on taxes, a small-displacement car is a more cost-effective choice.

II. Drinking and Smoking: Tax Rates Directly Linked to Alcohol Content

Regarding alcohol, Article 2 of the Presidential Decree stipulates:

Alcohol content over 23%: 110%
Alcohol content from 23% to 10%: 90%
Alcohol content below 10%: 72%

Beer is divided into two tiers based on alcohol content:

Over 5% and above: 70%
From 0.5% to 5%: 60%

Tobacco products:

Cigars, cigarettes or boxed cigarettes and other tobacco products: 72%
Cut tobacco: 47%

Finished beverages:

Carbonated water, soda water and similar beverages: 12%
Other beverages: 17%

Additionally, legally licensed coin-operated gaming machines, various gaming machines, and Gambling gaming machines have an Excise Tax rate of 50%.

III. What About Items Not Mentioned? Have the Tax Rates Changed?

Article 2 of the Presidential Decree clearly states at the end: for other Goods and Services subject to Excise Tax that are not revised or added with Excise Tax rates in this Decree, the original provisions shall still apply.

In other words, this adjustment only targets the listed Goods; those not listed need not worry.

This Presidential Decree is Effective from the date of signing by the President of the country, and the government is responsible for its organization and Enforcement.

If you are engaged in Import and export, retail, or catering in Laos, it is recommended to check against this list to see if your Goods involve tax rate changes. Want to quickly determine? You can go to 老法智 LaoPaniti to ask AI for free; enter the product type and get a reference.

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

FAQ

I bought a 1.5L sedan in Laos. What is the Excise Tax?

According to Article 2 of the "Presidential Decree on Adjusting Excise Tax Rates for Certain Goods," for jeeps and sedans with engine displacement over 1,000cc to 1,600cc, the Excise Tax rate is 41%.

How is the Excise Tax on beer calculated in Laos?

According to Article 2 of the Presidential Decree, beer with alcohol content over 5% and above has an Excise Tax rate of 70%; beer with alcohol content from 0.5% to 5% has a rate of 60%.

Will the tax rates for Goods not mentioned in this adjustment change?

No. Article 2 of the Presidential Decree clearly states that for other Goods and Services subject to Excise Tax that are not revised or added with Excise Tax rates in this Decree, the original provisions shall still apply.

Legal basis

需要人办？相关服务在线提交 · ບໍລິການທີ່ກ່ຽວຂ້ອງ · Get it done

商业经营合规顾问

围绕经营事项梳理公司、用工、税费、合同收款、商标保护和门店合规风险，形成可跟进的服务清单。

在线提交需求 · ສົ່ງຄຳຂໍອອນລາຍ →

居民民事服务协助ຊ່ວຍບໍລິການເອກະສານພົນລະເມືອງ

协助梳理事项、材料清单、表格路径和服务点承接。

在线提交需求 · ສົ່ງຄຳຂໍອອນລາຍ →

Buying a Car, Drinking, or Buying Cigarettes: How Exactly is Excise Tax Calculated in Laos? A Presidential Decree Explains the Tax Rates Thoroughly

Buying a Car, Drinking, or Buying Cigarettes: How Exactly is Excise Tax Calculated in Laos? A Presidential Decree Explains the Tax Rates Thoroughly

I. Buying a Car: The Larger the Engine Displacement, the More Painful the Tax

II. Drinking and Smoking: Tax Rates Directly Linked to Alcohol Content

III. What About Items Not Mentioned? Have the Tax Rates Changed?

FAQ

I bought a 1.5L sedan in Laos. What is the Excise Tax?

How is the Excise Tax on beer calculated in Laos?

Will the tax rates for Goods not mentioned in this adjustment change?

Legal basis

需要人办？相关服务在线提交 · ບໍລິການທີ່ກ່ຽວຂ້ອງ · Get it done

相关阅读 · ອ່ານເພີ່ມ · Related reading