The World Bank has urged Laos to raise its value-added tax (VAT) and taxes on tobacco and alcohol to address high inflation and currency depreciation. The bank also recommended increased spending on healthcare and education. Laos’ troubled economy has faced rising prices, low foreign investment, and public debt that could reach 125% of GDP in 2023. Over half of the debt is owed to China, which has invested in infrastructure projects such as the Lao-China High-Speed Railway. The government has approved numerous concession projects, attracting investors from China and Vietnam in the mining, energy, and agricultural sectors. Debt servicing payments could rise to 39% of GDP, and the depreciation of the Lao kip has been attributed to a shortage of foreign currencies. The World Bank suggests raising the VAT rate from 7% to 10% and increasing revenue from tobacco and alcohol sales to stabilize the government’s finances. The Lao government has also been combating corruption, selling government assets, and eliminating ineffective state
Balanced News: Sample Page Title
Our 'quick read' news summary
Read different perspectives from these news sources
Searching for related articles, please check back here later!
More top reads from Balanced News Summary
- Advertisment -