April 17, 2022


2 min read

LRA, Treasury to integrate tax collection

LRA, Treasury to integrate tax collection

LRA boss, Thabo Khasipe

Story highlights

    Sin taxes a nightmare for the brewer
    Treasury and LRA coordination to ensure revenue compliance and regularisation

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COLLABORATION between the Lesotho Revenue Authority (LRA) and the Treasury Department in the Ministry of Finance is key towards ensuring compliance and more revenue collection into the government coffers, says LRA Commissioner General, Thabo Khasipe.

He said ongoing negotiations between the tax collector and treasury would result in permanent cooperation, consequently improving tax compliance.

“We have to work together to achieve this,” Mr Khasipe said when announcing the tax collection results for the 2021/22 fiscal year.

“So we decided to integrate our systems and that means we as the LRA can access both systems to check how things are going. This is in line with the automatic compliance that we are talking about.”

While the treasury department is responsible for the execution of payments and the management of the government’s cash and financial reporting, treasury regulations were adopted by government in 2014.

The regulations recognise the importance of cash flow planning in section 13(1), stating that the Accountant General in consultation with the Central Bank of Lesotho (CBL), the Budget Department, the Macro-Fiscal Unit and other departments shall ensure the existence of a functional cash flow management framework including cash flow monitoring for efficient and effective use of government cash resources.

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It is expected that treasury’s coordination with the LRA will ensure revenue compliance and regularisation.

In a move to strengthen revenue collection efforts, the Minister of Finance, Thabo Sophonea said the government was pushing for the enactment of laws that would make it easier for the LRA to collect more revenue.

The legal instruments include the Value Added Tax (VAT) Amendment Bill, Tobacco and Alcohol Products Levy Bill, Income Tax Amendment Bill, Lesotho Revenue Authority Amendment Bill as well as the Tax Administration Bill.

“I did plead with Parliament to prioritise legal frameworks that will enable LRA to discharge its mandate effectively and efficiently,” Mr Sophonea said.


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