CarsExpat RescourcesGovernmentLao EconomyRules and LawTax

Authorities Call For Vehicle Owners To Pay Road Tax 2018

Source: Vientiane Times

Authorities have announced that 2018 road tax can now be paid and the Ministry of Finance is calling on vehicle owners to pay their obligations to the nation.

The finance ministry announced that vehicle owners who failed to pay last year’s road tax are required to pay both the 2017 and 2018 fees.

Due to delays in the 2017 tax payment process, the deadline for 2018 road tax payments has been extended to June 30 this year. However, for those who have already failed to pay their 2017 tax this year’s deadline has been set at March 31.

The finance ministry warned that those failing to pay by the deadline would be fined 40 percent of their obligated road tax rates.

The payment of the road taxes can be done electronically through BCEL Bank with various options including mobile applications and ATMs.

J&C Services Motor Insurance Laos
The BCEL Bank system has been utilised effectively and transparently in gathering the road fees with all the money paid by vehicle owners being directly transferred to the national budget.

A source from the Ministry of Finance commented that the government set a target to accumulate 60 billion kip for 2017.

Almost 40 billion kip or around two-thirds of the plan has been collected so far. This means stronger action needs to put in place to ensure all vehicle owners meet their tax obligations.

Meanwhile, the Ministry of Finance has instructed its departments in Vientiane and provinces to work closely with other sectors to encourage vehicle owners to pay the road fees.

The ministry is also working in cooperation with police to enforce the law properly, ensuring that those who fail to pay the road tax by the deadline will be fined.

According to statistics from the Tax Department, Laos has some 1.8 million vehicles, but typically only some 30 percent of vehicles paid their road taxes each year.

In the capital alone, some 843,500 vehicles have been registered excluding those belonging to national defence and security forces, according to a report from the Vientiane Vehicle Control Unit.

The Presidential Decree on Road Tax determined the new annual fees.

2018 Road Tax Fees

2-3 Wheeled Motorbikes

Engine Type Fee
<110cc 15,000 KIP
111cc-150cc 20,000 KIP
151cc-200cc 30,000 KIP
>200cc 100,000 KIP

 

Privately owned Sedans, SUVs, Vans and Pickups

Engine Type Fee
<1000cc 100.000 KIP
1001cc-1600cc 150.000 KIP
1601cc-2000cc 200.000 KIP
2001cc-2500cc 250.000 KIP
2501cc-3000cc 300.000 KIP
30001cc-4000cc 350.000 KIP
4001cc-5000cc 400.000 KIP
>5001cc 500.000 KIP

With a population of some 850,000, the capital city is very close to having a motor vehicle for every single resident.