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Timor-Leste has one of the highest smoking rates in the world, and pro-health tobacco tax policy is the most effective measure to reduce the persistently high tobacco use prevalence in the country. Even though Timor-Leste has implemented some tobacco control measures, its tobacco tax policy is weak and limits the ability of the government to reduce tobacco use and to lower the health and economic damage caused by tobacco use. This policy paper offers five (5) key recommendations for improving the tobacco tax system in Timor-Leste.