Vientiane (VNA) - Lao President ThonglounSisoulith has issued a decree that imposes higher excise tax on certaingoods, aimed at curbing the import of luxury items in a bid to reduce theoutflow of foreign currency.

Specifically, the Presidential Decree No. 003, issued onOctober 9, raises the excise tax on jeeps and sedans that use fuel, alcoholicbeverages, tobacco, soft drinks and slot machines, gaming machines, and alltypes of gambling equipment that has a valid licence.

The new excise rates for fuel-powered jeeps and sedans havebeen set according to engine size, as follows: 31% for vehicles with an enginecapacity of up to 1,000cc; 41% for a capacity of 1,001-1,600cc; 56% for 1,601-2,000cc;66% for 2,001-2,500cc; 82% for 2,501-3,000cc; 127% for 3,001-4,000cc; 200% for 4,001-5,000cc;and 220% for more than 5,000cc.

The previous rates were 25%, 30%, 35%, 40%, 45%, 70%, 85%and 90%, respectively.

Alcoholic beverages (except beer) with an alcohol contenthigher than 23% will have the excise tax increased from 70% to 110%. Drinks withan alcohol content of 10-23% will have the tax increased from 60% to 90%, andbeverages that contain less than 10% alcohol will have an added excise tax of72%.

The excise tax rates for beer with an alcohol content ofmore than 5% will now be 70%, while beer with an alcohol content of 0.5- 5%will incur a tax of 60%.

The tax on cigarettes has increased from 50% to 72%, and on other tobaccoproducts from 35% to 47%. Processed beverages such as soft drinks and soda willsee the tax increased from 5% to 12% while the tax on energy drinks willincrease from 10% to 17%.

The decree also imposed a higher excise tax on slot machines,all types of gaming machines and all types of authorised gambling equipment, raisingit from 35% to 50%./.