Bridge crossing nets 98 million kip from Value Added Tax
Customs checks at Lao-Thai Friendship Bridge in Vientiane have netted the country over 98 million kip via the 10 Percent Value Added Tax since implementation of stricter controls in late 2016.
Deputy Head of the Customs International Checkpoint under Lao-Thai Friendship Bridge, MrSoutchaiInthavong told Vientiane Times on Wednesday that since the government had implemented the Provision on the Levy of 10 Percent Value Added Tax of Passengers' Personal Effects on November 1, 2016 and so far this year over 98 million kip had been raised.
To date, 45,026 vehicles have passed the checkpoint with 1,262 vehicles notified to pay the 10 percent of the value tax on imports of goods.
Currently, customs officers at the bridge are called upon to collect tax and customs duties on imports of fuel, food products and vehicles over set values.
Checks are also active at the Thanalaeng checkpoint from which a cross-border railway connects to Thailand's NongKhai.
The provision stipulates that upon entry through border checkpoints, including international airports, Lao citizens or expats living in Laos shall pay 10 percent of the value of new or used personal effects, in the form of Value Added Tax (VAT).
The tax is exempted for infrequent passengers who travel less than twice a month and bring in items worth less than US$50.
MrSoutchaiInthavong said customs officers were ordered to collect 70 billion kip in revenue per month.
However, since the government has implemented charges of 10 percent Value Added Tax, people in Laos understand more clearly the real value of goods and have reduced their purchase of products from Thailand, he said.
The 10 percent Value Added Tax is aiming to encourage people in Laos to spend more of their budget for food and othe r products inside the country.
MrSoutchaiInthavong said the number of Lao people passing the checkpoint remained similar but some 80 percent had reduced the amount of imported products from Thailand.
He said the majority of Lao people traveled across the border for primarily tourism and relaxation rather than commercial reasons.
By Times Reporters
(Latest Update January 26, 2017)