By Seleoe Nonyane
The Revenue Services Lesotho (RSL) this week launched the 2022/23 filing season campaign and presented the revenue performance report of RSL for the year ending 31st March 2023.
The theme for this years’ filling season campaign is called “Its More than Just Tax”
The theme reminds the tax paying community that their contributions go a long way in delivering much needed social services to our communities.
In his address to the media conference, the acting RSL commissioner general Mosuoe Mapetla was grateful to a majority of clients who continue to honour their tax obligations.
Mapetla said April 1 every year marks the beginning of the period whereby the residents and non-residents who are taxpayers prepare their tax records, do necessary calculations, prepare tax payments, fill Income tax return forms. These, he added, should be submitted before end of June 30 2023 deadline.
“With the filing season campaign, we implore all taxpayers, whom we now refer to as clients in their various categories: large businesses, small and medium businesses, partnerships, sole traders, employees, and of course all individuals who have made and received an income in 2022/23 financial year to file and submit their income tax returns and pay taxes due.
“We will embark on a number of initiatives aimed at reminding our clients of their tax obligations to provide tax education and to encourage them to do the right thing by filing and paying on time.
“These initiatives include webinars, tax clinics and an ongoing social media communication intended to improve client appreciation of the Lesotho tax system and the role they should play as individual taxpayers,” he said.
Mapetla warned that filing of returns and payment of taxes can now be made through online platforms such as an Interim e -Filing solution available on RSL website while payments can be made at any of the commercial banks, including the RSL banking hall or through electronic funds transfers (EFT).
He said RSL recently launched e-payment solution intended to enable clients to make payments of customs declaration using mobile money platforms, mainly Mpesa at the current moment, as well as e-taxation for monthly payments of PAYE and VAT.
RSL introduced online services whereby clients need not to come to the RSL offices for services such as tax clearance certificates and change of ownership when selling their registrable goods such as motor vehicles.
In regard to the Revenue Performance Report for 2022/23 financial year he said the RSL remitted M7, 833.57 billion against the M 8, 699.78 billion target and thus missing the target by M866.21 million which is 10 percent.
Mapetla said the revenue collection outcome comes against a backdrop of a highly volatile global economy due to the impact of COVID -19 and the on-going Russia-Ukraine hostilities
Therefore, he said, it is remarkable that the RSL has demonstrated a spirit of resilience in the face of the economic constraints alluded to above, by growing revenue collection by M550.85 million that is 7.6 percent as compared to last year’s performance.
He noted that the overall tax collection is made up of collections from income tax and value added tax (VAT) only and excludes customs duties.
“So, income tax annual target was M4,864.14 billion, and remittances stand at M4,282.58 billion. Therefore, income tax missed its target by M581.56 million which is 12 percent.”
Mapetla said the VAT annual target was M 3,835.68 billion, remittances stand at M 3,550.99 billion and missed its target by M284.65 million which is seven percent.
“The performance we are reporting on today translates to the revenue predicted against the bills that are still outstanding namely, Tax Administration Bill, Value Added Tax (VAT) Amendment Bill, Income Tax Amendment Bill, and the Tobacco and Alcohol Products Levy, which only got to be implemented in March this year.
“We remain hopeful that all the outstanding bills will be passed on time to enable growth in terms of revenue collection,” he said.
He said taxation remains the primary source of government revenue, thus it is critical that all pay their fair share, adding that the RSL goal is to raise much needed income to support the government’s development objectives.
He urged for tax compliance as it is a right thing to do.
He emphasized that RSL has constantly seen an increase in positive tax compliance behaviour for it is greatly grateful.
“Overall, we have seen an increase in the number of people enrolling for taxes. We have also seen an increase in the number of people submitting their tax returns and making timely payments on those taxes,” Mapetla said.
He said to build on the compliant behaviour RSL will soon introduce “automatic compliance” whereby all clients will become tax compliant without lifting a finger.
