DILI, 09 january 2023 – (TATOLI) – Sub-inspector of the Economic, Sanitary and Food Activities Inspection Authority (AIFAESA), Dionisio Neto da Silva called on product importers, distributors, retailers, and grocers in Dili and municipalities not to manipulate prices of goods.
“We called on the product distributors, retailers, and grocers not to manipulate the price of goods in the country,” Silva said at a joint inspection by AIFAESA), Customs Authority, and the Ministry of Commerce, Trade and Industry (MTCI) in Dili today.
Silva said the government’s new excise tax changes only apply to four items, namely cars, tobacco, sugar, and sugary drinks, saying, therefore, product distributors, retailers, and grocers have no reason to increase the prices of goods either in Dili or in the municipalities.
He stressed that the Excise Duty Changes came into effect on january 3, 2023, saying therefore, product distributors, retailers, and grocers should not increase the prices of the four items and other goods imported into the country before the implementation of the new Excise Tax.
“Therefore, once again I call the product distributors, retailers, and grocers to maintain the sale of products at normal prices. If we identify them violating the Decree Law No. 29/2011 on Fair Price, then they will be referred to the Public Prosecutor’s Office,” Silva explained.
Silva urges customers and communities who purchase basic necessities with a price increase to inform AIFAESA and the relevant authorities.
Meanwhile, Timor-Leste Customs Commissioner, Jose Abilio said that no product distributor has so far imported the four excise duty items, adding therefore the product distributor has no right to increase the price.
“We have not registered any product distributor who has imported the four excise duty items since january 1, 2023. Two product distributors imported the sweet drinks into the country in december 2022, but intend to re-export them after learning about the imposition of excise duty.”
Timor-Leste Association for Consumer Defense (TANE) urged communities to inform AIFAESA, TANE, and MTCI if they identify product distributors, retailers, and grocers committing price gouging.
Leonardo Mendonca, the owner of Covalima Kiosk, who complained about the recent price increase, reported that the price of Sedap (Instant Noodles) increased from US$7.70 to US$7.95 per box, Gresh (Sweet Drink) from US$7.50 to US$9.95 per box, and sugar from US$44 to US$80 per 50kg.
The approval of the State Budget bill for the fiscal year 2023 allows the government to impose higher taxes on cars. A car with a value of US$10,000 will be taxed at 10%, above US$ 25,000 will be taxed at 25%, and above US$ 50,000, will be taxed at 30%.
The approval of the budget also allows the Government of Timor-Leste to implement an increase in tobacco excise duty of 100%, from US$50 to US$100 per kg.
The government also increases the price of sugar and sweets by US$1 per kg. Meanwhile, the prices of each liter of sweet and non-alcoholic beverages increased by US$3, except for fruit juices which will contribute to the protection of public health.
Journalist: Filomeno Martins
Editor: Nelia Borges
