Friendship Bridge crossing nets 98m kip from VAT 

Soutchai Inthavong, deputy head of the Laos’ international checkpoint under the bridge, said that after the government on November 1 ordered stricter VAT collection on the personal effects of people entering the country, so far this year more than 98 million kip had been raised.
Since the beginning of the year, 45,026 vehicles have passed the checkpoint, with 1,262 of them ordered to pay 10 per cent of the value of goods being imported.
Currently, customs officers at the bridge are called upon to collect tax and customs duties on imports of fuel, food products and vehicles.
Checks are also active at the Thanalaeng checkpoint where a cross-border railway connects to Nong Khai, Thailand.
The provision stipulates that upon entry through border checkpoints, including international airports, Laotian citizens or expatriates living in Laos shall pay 10 per cent of the value of new or used personal effects, in the form of VAT.
The tax is exempted for infrequent passengers who travel less than twice a month and bring in items worth less than US$50 (Bt1,760).
Soutchai said customs officers had been ordered to collect 70 billion kip in revenue per month.
However, since the government has implemented charges of 10-per-cent VAT, people in Laos understand more clearly the real value of goods and have reduced their purchases of products from Thailand, he said.
The 10-per-cent VAT is meant to encourage people in Laos to spend more of their budget for food and other products inside the country.
Soutchai said the number of Laotians passing the checkpoint remained similar but some 80 per cent had reduced the amount of imported products from Thailand.
He said the majority of Laotians travelled across the border for primarily tourism and relaxation rather than commercial reasons.