The Laos Ministry of Finance is considering an increase in the standard VAT rate from 7% to 10%. The standard rate was reduced from 10% to 7% with effect from 1 January 2022 in order to stimulate the economy, although the reduction in the rate has not been particularly effective. Considering this and the need for additional revenue to reduce the budget deficit, the standard VAT rate would be increased back to 10% with the required legislation to be finalized by the end of 2023 and implemented in early 2024.