The authority seeks to enhance the efficiency and effectiveness of revenue collection and provide an improved service to the public. Such efforts are, however, being killed by the COVID-19 pandemic.
In the past financial year, LRA missed its annual revenue target for the first time since 2018, a condition which was largely blamed on the economic meltdown that swayed the 2019/20 financial year and the outbreak of the coronavirus disease.
Corporate Income Tax collections were at their lowest and employment also stagnated in the same financial year. Against the target of M7 554 billion, the revenue authority only managed to remit M6 962 billion. The net collections reflected a deficit of M591.85 million (-7.8 percent).
By gross amounts, LRA collected M7 864 billion, representing M162 million (2.1 percent growth) from the M7 702 billion collected in the 2018/19 financial year. With the pandemic continuing to devastate the world economies, it is clear the LRA may reach the lowest point in revenue collection this financial year.
The LRA Commissioner General Thabo Khasipe has told this publication in a brief interview that the authority will definitely fail if businesses are not functioning.