A food market in Vientiane capital. (Photo: kpl.gov.la) Vientiane (VNA) - The authorities of Lao capital Vientiane have urged the private sector to cooperate in implementing urgent measures to address economic and financial difficulties relating to inflation, rising exchange rates and foreign debt.
Representatives from the government and business sector held a meeting in Vientiane on October 17 to discuss and share ideas about finding solutions to the economic and financial difficulties.
Laos, especially the capital city, is grappling with inflation, rising exchange rates, high prices of goods and the weak kip, said Vientiane Mayor Atsaphangthong Siphandone, who chaired the meeting.
Atsaphangthong went on to say that there should be strong cooperation between the government and the private sector on measures and mechanisms to tackle these issues.
According to the Vientiane Institute for Social and Economic Sciences, inflation and socio-economic difficulties can be tackled by changing the psychology of people, charging a premium for foreign products, increasing the use of domestic products and services, and promoting tourism to attract more visitors.
The manufacturing of domestic goods should be promoted to meet daily needs, increase agricultural production, and reduce the cost of domestic production, the institute said, adding that the government should stimulate a policy to reduce the cost of electricity for households, irrigation and agriculture.
There should be a strict financial policy to reduce the deficit and for importing only what is necessary, it added.
President Thongloun Sisoulith on October 9 issued a decree that imposes higher excise tax on certain goods.
The decree raises the excise tax on jeeps and sedans that use fuel, alcoholic beverages, tobacco, soft drinks and slot machines, gaming machines, and all types of gambling equipment that has a valid licence. The excise tax rate for beer with an alcohol content of more than 5% will now be 70%, while beer with an alcohol content of 0.5- 5% will incur a tax of 60%.
It also imposed a higher excise tax on slot machines, all types of gaming machines and all types of authorised gambling equipment, raising it from 35% to 50%.
According to the local media, the decree aims to curb the outflow of foreign currency, encourage savings, prevent corruption and ensure the State is fully paid and the correct amount of taxes so that more funds are available to promote economic and social development./.
