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