YES

1 decompositions
 #0 -----------
   1: inc(tl(nats())) -> tl(inc(nats()))
   2: nats() -> :(0(),inc(nats()))
   3: inc(:(x,y)) -> :(s(x),inc(y))
   4: tl(:(x,y)) -> y

@Rule Labeling
--- R
   1: inc(tl(nats())) -> tl(inc(nats()))
   2: nats() -> :(0(),inc(nats()))
   3: inc(:(x,y)) -> :(s(x),inc(y))
   4: tl(:(x,y)) -> y

--- S
   1: inc(tl(nats())) -> tl(inc(nats()))
   2: nats() -> :(0(),inc(nats()))
   3: inc(:(x,y)) -> :(s(x),inc(y))
   4: tl(:(x,y)) -> y