DILI, 09 november 2022 (TATOLI) – The Executive Director of the National Alliance for Tobacco Control in Timor-Leste (NACT-TL), Sancho Fernandes, considered that the increase of tobacco taxes, from US$50 to US$100 per kilogram, could contribute to the country’s economy growth.
He said that NACT-TL fully supported the government’s policy of increasing tobacco taxes to reduce the risk to public health, and also increase domestic revenue.
“If there is an increase in tobacco taxes, it would lead to a reduction in cigarette consumption,” Fernandes told Tatoli at his office in Bairo-Pité, Dili.
He said that the Timorese people will stop smoking if a significant tax on tobacco is implemented in the country: “People will be able to save money, while the taxes would contribute to increasing domestic revenues.”
Fernandes said instead of increasing the tax on every kilogram of tobacco, the government must increase the price of every package of cigarettes by 70%, saying it would contribute around US$46 million to the nation’s revenue annually.
He recalled that around 270,000 Timorese people are smokers, saying therefore Timor-Leste spends US$64 million dollars every year for the treatment of the diseases caused by the effects of smoking.
He said no significant progress had been made following the implementation of an increase in tobacco taxes up to $50 per kg in 2021.
According to Fernandes, between 2016 and 2020 the government raised US$14 million from tobacco taxes. However, due to the increase in tobacco taxes, in 2021, the government was able to raise US$19 million.
The World Health Organization (WHO) estimates that more than 260,000 Timorese will be smokers in the next two years.
NACT-TL concluded that that the policy of raising tobacco taxes would help prevent low-income populations and underage children from smoking.
Journalist: Jose Belarmino De Sá
Editor: Nelia Borges
