The economy of East Timor is a rapidly growing one, with a strong focus on the development of its natural resources and the diversification of its economic base. The country has seen significant economic growth in recent years, with GDP increasing by an average of 8.2% annually between 2006 and 2018. This growth has been largely driven by the development of the country’s oil and gas imports, which have become the main source of government revenue. 

The country’s imports

The contribution of imports to the economy of East Timor has been crucial in helping to sustain its growth. Imports have provided the country with access to a wide range of goods and services, including consumer goods, industrial equipment, and technology. This has enabled the country to develop its industries, create jobs, and increase the standard of living for its citizens. The country has also benefited from increased foreign direct investment, which has helped to further develop its economy.

Import duties and taxes

The import duties in the nation vary depending on the goods that are being imported. Generally, goods are subject to either an ad valorem or specific duty. An ad valorem duty is a percentage of the value of the goods being imported, while a specific duty is a fixed amount per unit of products. In addition, East Timor also levies excise taxes on certain goods, such as alcohol and tobacco products.

Electronics 

The Government has recently implemented a tax on electronics to support local businesses. The import tax on electronics is set at 10%, which is significantly lower than in other countries in the region. This will make it easier for local businesses to compete with foreign companies, and it will also help to keep prices down for consumers. 

Vehicles 

The import tax on vehicles in East Timor is set at a flat rate of 2.5%. This rate applies to all imported vehicles, regardless of the make, model, or year of manufacture. This tax is designed to encourage local businesses to invest in the country’s infrastructure and create jobs for citizens.

Utilities 

Import taxes on utilities in East Timor are set at a rate of 10%. This rate is lower than the rates of other countries in the region and is intended to encourage the importation of goods and services into the nation. This rate will also help to ensure that the resources are managed responsibly and that the nation’s economy can grow and develop sustainably.

Regulations regarding imports

The government of East Timor has recently implemented new laws regarding import taxes. These laws are designed to ensure that all imported items are taxed fairly and equitably, providing a much-needed source of revenue for the government. 

Under the new laws, all imported things must be taxed at a rate of 10%. This rate applies to all goods, regardless of the republic of origin or the type of product being imported. This ensures that all imported merchandise is treated equally and that no one state or type of product is given preferential treatment. 

Import taxes exemptions

The Government of East Timor has also implemented a series of tax exemptions to promote economic growth and development in the country. 

The tax exemptions will apply to a wide range of products and services, including those related to the agricultural, industrial, and service sectors. This will help to reduce the cost of essential items, making them more affordable for the citizens of East Timor. 

Import duty is waived on the following items:

• Goods accompanying a person entering Timor-Leste from some other land
• Items re-imported in the same status as when they were shipped overseas
• Items brought into the country by registered nonprofit groups
• Products for momentary admission if the importer has covered the taxes in a prescribed manner
• Certain newborn and female sanitary items