Rédaction Africa Links 24 with Lesotho Times
Published on 2024-04-10 22:45:51
The Revenue Services Lesotho (RSL) has collected 8.87 billion in taxes for the fiscal year 2023/24 despite missing the set target by 9.3%. The taxman aimed to collect M9.78 billion but fell short of this goal. This information was shared by RSL Commissioner General, ’Mathabo Mokoko, during a media briefing held at RSL Headquarters in Maseru.
Although the target was not met, Advocate Mokoko highlighted that revenue collection grew by 12.5% compared to the previous fiscal year, where M7.83 billion was collected. Despite the challenging economic conditions, the revenue collection performance was commendable.
The economic outlook depicted an expected growth of 2.1%, but the reality was a growth of about 0.9%. This lower economic growth negatively impacted tax collections as the main tax types did not grow as projected. The construction sector, which was expected to contribute significantly, only accounted for 2.7% of GDP, affecting tax collection performance.
Inflation rates also deviated from projections, standing at 7.3% rather than the expected 6.6%. This significantly impacted VAT collections as consumer spending patterns were affected by high inflation. Despite these challenges, progress was made under the Lesotho Tax Modernization Project, including the deployment of E-Taxation solutions like E-Filing, E-Payment, and E-Registration.
Advocate Mokoko emphasized the importance of tax compliance, acknowledging some sectors’ non-compliance in paying taxes. The RSL recorded successes in registering new taxpayers, particularly from agriculture, retail, and construction sectors. Efforts were also made to facilitate online tax submissions to improve efficiency.
Looking ahead, Advocate Mokoko urged all taxpayers to fulfill their civic responsibility by filing and submitting their income tax returns during the crucial tax calendar period between 1 April and 30 June. This period provides individuals and businesses with the opportunity to ensure their tax affairs align with Lesotho’s tax laws.
She extended a call to action to all taxpayers in Lesotho, emphasizing the importance of compliance in contributing to the welfare of Basotho. Compliance is not just a legal obligation but a vital aspect of supporting the most vulnerable sectors of society.
In summary, despite missing the annual target, the Revenue Services Lesotho showcased growth in revenue collection for the 2023/24 fiscal year. The organization’s focus on modernization and compliance highlights its commitment to ensuring sustainable revenue generation for the government of Lesotho.
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