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Table 2.6.1.1: Total Revenue 2014 – 2020 m
2014 Actual 2015 BB1
Rec 2016
Projection 2017
2018 2019
2020 Total Revenues
2,486.5 2,445.4
1,764.9 1,449.5
1,447.5 1,190.5
1,107.2
Domestic Revenues 168.0
170.4 171.4
180.9 190.5
200.6 210.3
Petroleum Revenues 2,318.5
2,275.0 1,593.5
1,268.6 1,257.0
989.9 896.9
Sources: National Directorate of Economic Policy and the PF Administration Unit, Ministry of Finance, 2015
2.6.2: Domestic Revenue
Domestic revenues in Timor-Leste are composed of tax revenues, fees and charges, interest and revenues from autonomous agencies. Table 2.6.2.1 breaks down
domestic revenues into these categories showing actual and projected amounts between 2014 and 2020. Total domestic revenues are expected to slightly increase
by 0.6 in 2016 compared to the 2015 Rectification Budget figures. This is due to an increase in revenues from fees and charges, following a wider range of services
provided by the Government and a more efficient collection of these fees and charges.
Table 2.6.2.1: Domestic Revenue 2014 – 2020 m
2014 Actual
2015 BB1 Rec
2016 Projection
2017 2018
2019 2020
Total Domestic Revenue
168.0 170.4
171.4 180.9
190.5 200.6
210.3 Taxes
123.8 125.5
116.4 121.5
126.6 131.8
137.0
Fees and Charges 37.7
37.2 46.4
50.2 54.0
58.3 62.1
Interest 0.1
0.0 0.0
0.0 0.0
0.0 0.0
Autonomous Agencies
6.4 7.6
8.6 9.3
9.9 10.6
11.2 Source: National Directorate of Economic Policy, Ministry of Finance, 2015
2.6.2.1: Tax Revenues
Tax revenues comprise the largest source of domestic revenues in Timor-Leste, totalling 73.7 of total domestic revenues in 2014. Tax projections are summarized
in Table 2.6.2.1.1 and are divided into direct taxes, indirect taxes and other tax revenues.
Tax collections are expected to decrease in 2016, reaching 116.4 million, a 7.3 fall compared to the 2015 Rectification Budget figure. This is due to a fall in indirect
taxes, largely due to the reduction in the international price of oil.
Direct taxes are expected to slightly increase compared to the 2015 Rectification Budget, reaching 52.2 million in 2016. This is due to expected higher withholding
tax and individual income tax. Withholding tax is expected to increase in 2016,
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compared to the 2015 Rectification Budget figure, due to a number of new infrastructure projects, which will start during the second half of 2015. Similarly,
revenues from individual income are expected to increase compared to the 2015 Rectification Budget figure, following changes to the budget classifications of income
tax.
Indirect taxes are expected to decrease in 2016 by 19.8 compared to the 2015 Rectification Budget figure, mainly due to a fall in the international price of oil.
International oil prices fell across 2015, but are expected to stabilize in 2016, remaining below price levels in previous years. Currently, mineral fuels compose
over a quarter of imports, a ratio that is expected to increase with the expansion of electricity supply and the number of motorized vehicles in the country. Lower prices
of food products and the appreciation of the dollar are also reducing the value of imports, which are expected to continue in 2016. The combination of these factors,
together with a lower volume of imports, explains the strong decline in indirect taxes for 2016.
The collection of indirect taxes, however, should improve in the medium term, following expected rises in international oil prices and the strengthening of the
administration and collection systems.
Table 2.6.2.1.1: Total Tax Revenue 2014 – 2020 m
2014 Actual
2015 BB1 Rec
2016 Projection
2017 2018
2019 2020
Total Tax 123.8
125.5 116.4
121.5 126.6
131.8 137.0
Direct Taxes 52.9
45.7 52.2
56.3 60.3
64.4 68.5
Income Tax 16.8
18.3 15.5
17.5 19.6
21.7 23.8
Individual Income 1.3
1.2 2.1
2.4 2.8
3.1 3.5
Individual Inc. Other 15.5
17.1 13.4
15.1 16.8
18.6 20.3
Corporate Tax 8.0
7.8 7.8
8.1 8.4
8.8 9.1
Withholding Tax 28.2
19.5 29.0
30.6 32.3
34.0 35.6
Indirect Taxes 70.7
79.7 63.9
64.9 66.0
67.1 68.2
Service Tax 3.2
3.6 2.8
2.9 3.0
3.1 3.3
Sales Tax 14.5
15.8 13.7
14.3 14.8
15.4 16.0
Excise Tax 39.6
44.4 35.6
35.5 35.3
35.2 35.1
Import Duties 13.4
15.9 11.8
12.3 12.8
13.3 13.9
Other Tax Revenue 0.1
0.2 0.2
0.2 0.2
0.3 0.3
Source: National Directorate of Economic Policy, Ministry of Finance, 2015
2.6.2.2: Fees Charges
Fees charges include a wide selection of categories from non-tax sources that contribute to domestic revenue. These comprise administrative fees, utility
payments and endowments to the Government from natural resources other than petroleum. As shown in Table 2.6.2.2.1, most of the categories represent small
