DILI, 08 november 2022 (TATOLI) – The Government of Timor-Leste is determined to implement an increase in tobacco excise duty of 100%. The plan was revealed by Timor-Leste’s Finance Minister, Rui Gomes, yesterday, during the nation’s annual Budget 2023 presentation.
The tax change aims to discourage tobacco consumption in Timor-Leste, protecting Timorese citizens from the devastating health consequences and increasing State revenue.
“The Government intends to increase tobacco taxes by 100%, from US$50 to US$100 per kg,” said Finance Minister Rui Gomes.
He said that 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: “Next year, tobacco taxes would increase by 100% in order to contribute to domestic revenues and also protect Timorese citizens from the devastating health consequences.”
Gomes said that in Timor-Leste the tobacco tax is low compared to tobacco taxes in Australia, Singapore, and Indonesia with US$1,540 per kg, US$304, and US$334 respectively.
“If the National Parliament intends to increase the price of tobacco up to US$300 per kg, then the Government is not opposed,” he stressed.
Gomes also highlighted the importance of raising the prices of sugar and sugary drinks to prevent chronic diseases.
He said the government also intended to increase the price of sugar and sweets by US$1 per kg: “Meanwhile, the prices of each liter of sweet and non-alcoholic beverages would increase by US$3, except fruit juices which will contribute to the protection of public health.”
In addition, he said the government had also planned to introduce taxes on cars: “If the value of a car is above US$10,000, then the tax will be 10%. If the value is above US$25,000, the tax will be 25%, and above US$50,000, the tax will be 30%.”
“We expect that with the increase in these taxes, domestic revenues will be increased from US$153.7 million to US$174 million,” he concluded.
Journalist: José Belarmino De Sá
Editor: Nelia Borges
