In 2026, the Government of the Lao People's Democratic Republic, with technical support from the United Nations Development Programme (UNDP), prepared Lao PDR's first Tax Expenditure Report. The report provides a systematic assessment of tax expenditures in Lao PDR, defined as revenue foregone as a result of preferential provisions or deviations from the benchmark tax system. Tax expenditures play a significant role in Lao PDR's fiscal framework.

The report covers the period 2019–2023 and uses the revenue foregone approach to estimate the fiscal cost of tax expenditures by comparing actual revenue collected against what would have been collected under a benchmark tax system without preferential treatment. The study covers 540 concession agreements and government-controlled business projects approved by the central authority and nine provinces. It assesses tax expenditures across major tax categories, including Profit Tax, VAT, Customs Duty, Excise Duty, and Non-Tax Revenue. The report serves as an evidence base to inform policy decisions on sustainable domestic revenue mobilization in Lao PDR.