Laos exempts value-added tax on mineral and electricity exports to attract investment

On August 8th, Laos officially implemented a Value-Added Tax (VAT) exemption policy for some export commodities. This policy is one of the important measures aimed at promoting exports and attracting investments in key sectors such as mining and energy. The commodities eligible for VAT exemption mainly include: primary minerals (mineral products) and semi-finished minerals that enter special economic zones, specific economic zones, or are exported abroad for further processing. In addition, electricity produced domestically, whether consumed within the economic zones or directly exported, also falls within the scope of tax exemption. This policy helps enterprises reduce production costs, enhance the competitiveness of Lao commodities in the international market, and also contributes to shaping Laos as a regional center for clean energy production and export. The Lao government hopes to encourage investments in its mineral deep-processing sector through this VAT exemption policy and change the previous situation of mainly exporting raw materials.