New decree bans online tobacco sales

The government has issued a new decree imposing heavy fines and strict controls on the tobacco industry, targeting illegal trade and banning all online sales.
Prime Minister Sonexay Siphandone signed the Decree on Fines and Other Measures against Violators of Tobacco Control Laws, which took effect on March 17.
The decree sets out tough penalties across the tobacco supply chain, with fines of up to 1 billion kip for unlicensed factories. Small-scale operations face fines starting at 500 million kip, rising to 700 million kip for medium-sized businesses.
In a major step, the decree bans all tobacco sales through electronic and social media platforms. Companies that break the rule face fines of up to 300 million kip, while individuals face fines of up to 20 million kip.
The decree also bans the import and use of tobacco vending machines. Violators face fines of 30 million kip per machine, while premises owners who allow installation will be fined 10 million kip.
However, the decree leaves it unclear whether the ban extends to e-commerce platforms such as food delivery or online shopping apps.
The move aims to curb the informal tobacco trade and strengthen state control over production, distribution and sales.
Under the new rules, all fines must be paid through a bank within 10 working days. Of the total amount collected, 60 percent will go to the state budget, while 40 percent will be added to the Tobacco Control Fund to support administration and public awareness campaigns.
The decree also tightens tax enforcement. Companies that produce or import tobacco without tax stamps face fines of up to 40 million kip. Retailers and distributors caught selling illicit or unstamped products face penalties of up to 20 times the value of the goods.
Businesses that fail to contribute to the Tobacco Control Fund will be fined up to five times the amount owed.
The government has introduced a strict enforcement system. A second violation leads to the suspension of business operations or import-export rights, while a third offence results in permanent revocation of the operating licence.
Companies must also submit annual reports on revenue and product ingredients. Failure to comply carries fines of up to 200 million kip.
New rules also cover packaging, requiring 20 cigarettes per pack and 10 packs per carton. Companies that fail to meet these requirements face fines of up to 80 million kip.
The decree also defines “new-generation tobacco products”, including e-cigarettes and shisha tobacco, and sets fines of up to 1.5 million kip for possession or use.
On marketing, the government has banned all forms of sponsorship and corporate social responsibility activities linked to tobacco promotion. Companies face fines of up to 200 million kip, while recipients face fines of up to 20 million kip.
Promotional activities such as discounts, giveaways, product exchanges and bundling are also prohibited. Open display of tobacco products, brand visibility and price listings at points of sale are banned, with fines of up to 200 million kip for promotions and 10 million kip for product displays.
The decree marks a major step in strengthening tobacco control in Laos, with a clear focus on reducing illegal trade and limiting public access to tobacco products.

By Times Reporters
 (Latest Update May 5, 2026)