DILI, 09 january 2022 (TATOLI) – The Ministry of Finance, Rui Augusto Gomes says the Government’s new excise tax changes only apply to four items, namely cars, tobacco, sugar, and sugary drinks.
“The new excise duty will apply only to these four items – cars, tobacco, sugar, and sugary drinks. It will not apply to other items. Therefore, there is no justification for retailers and grocers to increase the prices of any other items,” Minister Gomes said in a statement on monday.
He said the Excise Tax Changes took effect on january 3, 2023, saying therefore those retailers and grocers who increased the prices of goods since january 1, 2023, had already committed price gouging.
A joint inspection is currently being carried out by the Economic Activity Inspection Authority (AIFAESA), the Customs Authority, and the Ministry of Commerce, Trade and Industry (MTCI) to identify those who have committed price gouging to help normalize the price of goods in the country.
Minister Gomes calls on citizens not to dramatize the situation: “Let the team do its work”.
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
