East Timor government to carry out fiscal reform [ 2006-11-20 ]

Dili, East Timor, 20 Nov ­ The East Timor government is waiting for a number of studies from international agencies and foreign consultants to move ahead with the country’s fiscal reform, prime minister José Ramos-Horta said in Dili Sunday.

According to an official statement, the comparative studies will be carried out by experts from the World Bank, the International Monetary Fund (IMF) and the United Nations Development Program as well as by foreign consultants working for the East Timor government.

Saying that the current fiscal system was, “tiresome and discourages national and international investors,” the official statement said that, amongst other measure, the government expected the reduction or elimination of several taxes.

Ramos-Horta had already said that his government planned to eliminate some taxes and reduce others as part of the country’s fiscal reform, as well as creating conditions for international investors to set up an insurance company in East Timor, for example.

The prime minister noted the political and military crisis in April had eroded the confidence of foreign investors, but he said it was a growth crisis.

“I am sure that East Timor will have large economic growth in 2007,” said Ramos-Horta.

In a press statement issued on October 20, the IMF, whilst recognizing that the crisis had affected investor confidence which meant that growth would be negative in 2007, called on the Timorese authorities to work towards creating a favourable business environment including the adoption of a favourable legal framework for investments and the reduction of bureaucracy. (macauhub)

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