DILI, 10 june 2022 (TATOLI)- The Minister of Finance, Rui Gomes, inform that, the Government of Timor – Leste will advance the tax reform in 2023.
“Before the end of the year we will present the new tax law which will streamline the existing taxes, expand the tax base, implement progressive tax rates and increase the tax rate for high income, we will also present a new tax procedure code that will empower the Tax Administration with the tools and resources to combat tax fraud and evasion, while establishing a clear review procedure. We are also taking the steps to implement Value Added Tax in Timor – Leste, with a draft law expected to be presented in 2023. In relation to the Petroleum Fund, we are determined to take the necessary action to preserve it for future generation,’’ Finance Minister, Rui Gomes when conveyed his speech to the Timor- Leste Development Partner Meeting at the Ministry of Finance, Aitarak – Laran, Dili.
He added, as the Government made it clear on the Law on Grand Planning Options for 2023, Timor – Leste faces a fiscal cliff in 2035 Timor – Leste ‘s policy of excessive withdrawals is not reversed.
With that in mind, the mid- term budged framework included in the law on Grand Planning Options for 2023 establishes and actual reduction of the State Budged ceiling for 2023 as well as 2024 in relation to the 2022 State Budged, and from 2025 onward it caps the increase of the ceiling to the expected inflation.
“We also have implemented in 2021 a segmentation of the Petroleum Fund, creating an investment portfolio, to insulate from the short -term annual withdrawal, and a liquidity portfolio to fund the expected withdrawals for three years which we hope will mitigate some of the risks to the fund,’’ he said.
Journalist : Camilio de Sousa
Editor : Nelia Borges
