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.