Health taxes are excise taxes imposed on products that have a negative public health impact.
This technical note looks at the current tax situation for tobacco, alcohol and sugar-sweetened drinks in the Lao PDR and gives recommendations on how reform of health excise taxes could provide significant health and revenue gains. Excise taxation is considered one of the most cost-effective policy measures for reducing consumption of these products, while also raising meaningful revenue.
The report examines different tax options and structures, summarizing best practices from different countries. It looks at the negligible anticipated impact of the alcohol and tax increases announced in late 2013 and also the long-reaching influence of the investment license agreement enjoyed by cigarette manufacturers in Laos.
A full technical note and a two-sided summary of the study are both available.