Import Duty and Excise Duty in Lao
The law as it stands now empowers the Finance Ministry to set the excise tax between 25% and 150%, this is in addition to import duty of 40$. Car importers are urging the Lao government to lower the excise duty to a manageable level. The rate will depend on engine size, vehicle type such as SUV or luxury. Immporters claim that a lot of under the table payments are involved in current car import regime.
Who Can import a Vehicle Dutyfree
Only a foreign diplomat may import a vehicle into Laos duty free. He or she must obtain a letter from the Laos Ministry of Foreign Affairs verifying his/her status and requesting that Laos Customs permit duty free import. For all other foreigners and returning Lao nationals, it is almost impossible to import a vehicle into Laos. The procedures for a non-diplomat to import a vehicle are time consuming and tedious. The duty assessed can be as high as 300% of the new purchase value of the vehicle.
Import of Used Vehicles Prohibited
Please note that Lao government has now put brakes on import of second hand vehicles.