The Cabinet member for Finance, Michael Francino, today presented two draft regulations to the National Council for approval. The first amends the taxation regulation and introduces an income tax. The second provides for revised spending on the basis of the budget review undertaken last month.
The revised budget calls for an additional US$1,658,000 for the Power Authority to offset rising fuel prices and other cost increases for the first six months of 2000/2001, including US$300,000 to fund a program of meter installations to accelerate revenue generation. It is also proposed that the first US$1,358,000 in revenue raised by the authority after 1 January 2001 be returned to the authority to fund cost increases in this period.
An additional US$665,000 is also proposed for restoration of district public buildings and district works depots.
A net increase in the funding for the Timor Lorosa’e Police Service of US$1 million is proposed to accelerate the recruitment and training of local police. Funding is also suggested for an additional 1000 teachers and for bridging courses for University applicants who failed the entry tests.
The revised budget is also proposing the creation of an East Timor Defence Service at a cost of US$1 million in 2000-2001.
A number of amendments to Regulation 2000/18 on a Revenue System for East Timor was also presented, such as an increase in the excise rate on wine, spirits and cars. It also introduces both a wage withholding tax and a business income tax.
The National Council also approved its rules of procedures.
The Committee on Budget and Finance will hold a public hearing on the regulations in an open session in the National Council Chamber tomorrow. The proposals will then be discussed by the National Council and passed to Cabinet for final approval by Monday next week.
