The Government of the Lao People’s Democratic Republic, with technical support from the United Nations Development Programme (UNDP), has released the first Tax Expenditure Report.
The report covers the period 2019–2023 and uses the revenue foregone approach to estimate the fiscal cost of tax expenditures by comparing actual revenue collected against what would have been collected under a benchmark tax system without preferential treatment. The study covers 540 concession agreements and government-controlled business projects approved by the central authority and nine provinces. It assesses tax expenditures across major tax categories, including Profit Tax, VAT, Customs Duty, Excise Duty, and Non-Tax Revenue. The report serves as an evidence base to inform policy decisions on sustainable domestic revenue mobilization in Lao PDR.