Venidora Oliveira – Member of Parliament Estanislau da Silva has criticized the government for its failure to attract major investors to Timor-Leste.
The member of Commission C (public finance) said investment in Timor-Leste was dominated by small players rather than big companies. "There are lots of small shops; this means something is wrong with our policy to attract big investment to our country," the Fretilin MP said.
Big companies seemed reluctant to invest despite generous tax concessions. He said some foreign companies came to Timor-Leste not to invest but to complete government projects.
Member of Parliament Arao Noe said small shops paid tax but this was of little benefit to the state and its people.
"Because they're paying tax with a small budget only and it also does nothing to address unemployment," he said. "For example, a Chinese person may have a store but he needs only one or two staff."
Secretary of State for Supporting Private Sector Promotion Veneranda Lemos Martins said foreign companies registered with Trend Invest Timor-Leste and intending to invest $20 million or more were entitled to tax concessions.
Tax law 14/2011 stipulates that companies which invest in Dili or Baucau are exempt from taxation for five years, while those investing in Liquisa do not pay tax for eight years. Atauro and Oe-Cusse investors are exempt for 10 years.
Major investment projects included a planned five star resort at Tasi Tolu by Pelican Paradise Holdings. Dutch beer producer Heineken has expressed interest in opening a factory in Timor-Leste.
The proposed development would require several hectares of land and therefore needed to be debated by the Council of Ministers.
"If it's only $20 million, I can make a unilateral decision but if it's more than that, it should be taken to the council minister to be looked at," Martins said.