DILI, 09 november 2022 (TATOLI) – In her statement, Fernanda Lay from CNRT Party said that CNRT disagreed with the Government’s policy of increasing taxes on imported goods, saying such a policy would hurt the country’s small economy.
“I disagree with the Government’s policy of increasing taxes on imported goods as it would destroy the small economy. For example, if there is an increase in the price of sugar by US$1, automatically the ordinary citizen cannot afford to buy the sugar for backing cake and bread,” Lay made the comments at the National Parliament, today.
She said if the government implemented the policy, then illegal transactions in the border area would continue to increase: “While social inequality would continue to grow in the country. As a result, it would make it difficult for the security authorities to have maximum control over illegal transactions at the border zone.”
On behalf of the CNRT party, Lay urged the government to not implement such a policy.
On the other hand, Finance Minister Rui Gomes explained that the policy was necessary to increase state revenues while preventing citizens from devastating health consequences.
Gomes highlighted that raising taxes on sugary drinks would prevent Timorese children from having chronic diseases.
He reiterated that the taxes aim to discourage tobacco consumption in Timor-Leste, protecting Timorese citizens from the devastating health consequences and increasing State revenue.
During the start of the discussion of the 2023 General State Budget, Gomes revealed that the government is determined to implement an increase in tobacco excise duty of 100%.
He said the government has already introduced changes in the excise tax rates, so the price of tobacco has increased this year to US$50 per kilogram: “In 2023, tobacco taxes would increase by 100 percent in order to contribute to domestic revenues and also protect Timorese citizens from the devastating health consequences.”
Journalist: Camilio de Sousa
Editor: Nelia Borges
