Tax au­thor­ity ex­ceeds tar­get

Lesotho Times - - Business - Bereng Mpaki

FI­NANCE Min­is­ter ‘Mam­phono Khaketla says the con­tin­ued im­prove­ment of do­mes­tic rev­enue col­lec­tion mech­a­nisms is crit­i­cal in light of di­min­ish­ing South­ern African Cus­toms Union (SACU) rev­enues.

Dr Khaketla made the re­mark yes­ter­day dur­ing a press brief­ing to re­veal the rev­enue col­lected by the Le­sotho Rev­enue Au­thor­ity (LRA) dur­ing the 2015/16 fi­nan­cial year.

She said the LRA had col­lected M5.8 bil­lion against the M5.7 bil­lion tar­get set out for the tax au­thor­ity dur­ing the year un­der re­view.

The LRA’S “promis­ing and pos­i­tive” per­for­mance, Dr Khaketla said, ex­ceeded the set tar­get by 13 per­cent, and had also sur­passed the pre­vi­ous year’s ex­cess of M49 mil­lion with M103 mil­lion this year. The tar­get for the 2014/15 fis­cal year was M5.1 bil­lion.

“The per­for­mance of the LRA dur­ing the 2015/16 fi­nan­cial year has been promis­ing and pos­i­tive as we had set for them a tar­get to col­lect M5.7 bil­lion,” she said.

“I am pleased to re­port that against the tar­get of M5.7 bil­lion, the LRA has re­mit­ted 5.8 bil­lion. This trans­lates to an ex­cess of M102.75 mil­lion, which is re­ally a good thing since LRA col­lected more than their tar­get.”

Dr Khaketla said the rev­enue au­thor­ity’s per­for­mance in­di­cated its im­proved ef­fi­ciency and bet­ter com­pli­ance by tax­pay­ers.

“Some might think it is not a sig­nif­i­cant in­crease, but for us it is be­cause the fig­ures show that more peo­ple are com­ply­ing and the LRA is be­com­ing more ef­fi­cient,” the min­is­ter said, adding that the min­ing, fi­nan­cial and telecom­mu­ni­ca­tion sec­tors had con­trib­uted the most to ex­ceed­ing the tar­get.

“It also shows that if we set our minds to it, we can im­prove do­mes­tic rev­enue col­lec­tion. As a re­sult, I am ask­ing them to col­lect M6.4 bil­lion as a tar­get for this fi­nan­cial year.”

Con­tin­ues on page 20...

LRA Act­ing Com­mis­sioner-gen­eral Ad­vo­cate Reale­boha Mathaba (left) hands over a mock cheque to Fi­nance Min­is­ter Dr ‘Mam­phono Khaketla yes­ter­day.

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