The KJHUNTO bloc, one of the three Timorese government parties, criticized on Monday the proposal to increase some selective consumption taxes, especially on some imported goods, saying that they only translate a new weight on families.
“This increase in car taxes and other planned taxes on products not produced in Timor-Leste only the economic activity of the country will decrease“, said António Verdial, deputy of the Kmanek Haburas Timor Oan National Unity (KHUNTO).
“It is just a tax on Timorese families, which does not benefit the Timorese economy at all. It does not replace imports with domestic production, so it does not bring benefits to the economy,” he said.
Speaking in the reply to the Government on the first day of debate on the General State Budget Bill (OGE) for 2023, Verdial urged the Government to postpone the increases planned for next year, taking into account the international situation.
“These measures run the risk of further slowing down the economy, which is in a very difficult phase, due to international circumstances, including fuel prices,” he said.
“It is important to reduce the increase in these taxes in 2023 so that companies can increase their turnover. The KHUNTO bench asks the Government to work well, recognizing the real situation in which the country finds itself, with many youth without work and having to emigrate. We have to work to create more jobs”, Verdial maintained.
The OGE proposal for 2023 amounts to 3,160 million dollars (about 3,100 million euros), of which some 2,800 million correspond to the central administration, according to the proposal under discussion.
This amount includes, with regard to the “cake” of the Central Administration, the one billion dollars (about one billion euros) allocated to the National Liberation Fighters Fund, which has been in effect since 2022.
The proposal once again makes changes on the side of non-oil internal income, with the doubling of the import tariff rate, from the current 2.5% to 5%, “which will contribute to increasing internal income and will put Timor- It is in line with the world average of customs rates”.
The Government also modifies some of the rates of the selective consumption tax, applying a rate of one dollar per kilo to sugar and confectionery products, and three dollars per liter to “waters added with sugar or other sweeteners or flavored beverages and others”. , except fruit or vegetable juices.
Tobacco tax doubledgoing from 50 dollars to 100 dollars (from 50.3 euros to 100.7 euros) per kilo.
There will also be changes to motor vehicle taxes, which will increase to 10% for cars valued between $10,000 and $25,000, 25% for those valued between $25,000 and $50,000, and 30% for cars with a value of more than 25 thousand dollars of 50 thousand dollars.
Domestic non-oil revenue is expected to reach $175 million (€176 million) due to changes in fees and taxes, up from $153.7 million (€154.6 million) planned for this year.
Source: Observadora
