This month, the minister of finance and development planning, Dr Retšelisitsoe Matlanyane, appointed ‘Mathabo Mokoko as the new commissioner general of the Revenue Service Lesotho (RSL), making her the first woman to hold the top job in the revenue administration. This week, Mokoko sits down with theReporter’s Matšeliso Phulane, to say how she plans to transform the revenue services.
What is the mandate of the Revenue Services Lesotho (RSL)?
RSL is the main body responsible for the assessment, collection and receipting of specified revenues, on behalf of the Government of Lesotho.
How would you describe your vision for RSL and how long will it take you to implement it?
As Commissioner General, my vision is for the RSL to be a tax administration serving with passion to positively impact the livelihoods of Basotho, to make paying taxes fun, easy and smart using our digital capabilities and data technologies. I am targeting to bring all stakeholders on board, with the intention to create a sense of pride and purpose for all of us to improve our socio-economic standing of our beautiful country Lesotho, understanding that the most capable way of achieving our aspirations as a country whether from a local or international perspective, that guarding jealously our taxes is the only way to do it. This is our only credible pay cheque! I am thinking of RSL and all stakeholders moving in sync like athletes in a relay sport handing each other the baton to win together.
In respect of the timeline for implementing the vision, it is important to consider that my contract currently gives me three years to drive this vision. Accordingly, I have three years to make meaningful impact. To some people it may sound impossible, but it is important to remember that I have been in this institution for a good part of my career, and I am therefore not reinventing the wheel. I am taking over from great leaders the likes of Ntate Donovan (May His Soul Rest in Internal Peace), Ntate Jenkins, Ntate Letjama and Ntate Khasipe whom in principle have already created a foundation for this vision to take course. I’m therefore grateful to them because my job could have been much harder but for the solid foundation they have laid, I am hitting the ground running. So, I have three years to make meaningful impact!
Having been within the RSL structures for a long time where you worked as a Commissioner Operation Support to Commissioner Client Services, among others, what would you say are challenges/weaknesses that you have observed in the organisation, and how do you plan overcome them?
RSL faces a range of challenges, including tax evasion, outdated tax laws and delays in enactment of relevant tax laws intended to improve our efficiencies and capabilities amongst others, resource constraints whether liquid resources, technical and technological. To overcome these challenges, we have to be proactive in ensuring that the clientele we are serving really understands their tax obligations and also appreciate that this business is not for RSL but for all of Basotho, it’s a kind of business where we are all stakeholders playing different roles. Enhancing tax compliance through education and outreach programs can raise awareness amongst clients about their obligations and benefits of compliance, assisting our traders to take advantages of international opportunities like the AFCFTA (African Continental Free Trade Area) and SACU AEO (Authorised Economic Operator) programmes etc.
Simplifying and enacting the tax laws will aid in optimising revenue collection. Allocating resources efficiently, improving our processes and efficiencies using modern technology, data analysis and effective risks management capability enhancing our efforts for compliance monitoring, and strengthening enforcement efforts can help address limited resources and combat tax evasion. Moreover, fostering international cooperation and information sharing can assist in addressing some of the complex international trade issues such as profit and base erosion matters and managing cross-border trade. It is my intention therefore, to promote a fair tax environment. Thus, a combination of innovation, education, efficient resource allocation, local and international collaboration can help RSL navigate and overcome the multifaceted challenges we are facing.
In what state did you find RSL in terms of efficiency in tax collection? And what changes can we expect to see during your first year in office?
As RSL we have embarked on a journey to modernise tax systems with the intention of optimising revenue collection. It is worth noting that our mandate is to collect revenue for the government and there are targets set each year. Over the years we have managed to steadily grow the revenue, though we encountered some years including the past financial year. In the first year, I will prioritise moving the pillars of our modernisation journey particularly ensuring that the services that are critical and most needed by our taxpayers are easily accessible online, these include filing for all taxpayer and registration for instance.
There are cases of RSL employees and former employees being charged with fraud and money laundering. To what extend does this affect the image and credibility of RSL? How do you plan to restore the dented image and credibility?
As a point of departure, a proposition that RSL’s image and credibility is dented because of its stance against corruption cannot be correct. RSL is a public institution entrusted with a responsibility to collect revenue on behalf of the government. It has policies and procedures in place that govern and give guidance on how its employees conduct themselves. So, these governance tools act as precursors to help us deal with deviations or unethical conduct. As an institution, we have a very detailed code of conduct and ethics and a dedicated unit that is mandated to ensure that our conduct is aligned. Therefore, it cannot be right to say that when we deal with acts of corruption within the organisation that very same act can be construed to be detrimental to the good image of the organisation, it is actually the opposite.
It is this very same organisation that made the public, through the media, aware of these unfortunate incidents and all the measures that are being taken. People actually trust us more because they know we don’t tolerate crime and corruption. So, the key thing here is what you do when confronted with situations like these. So, we will continue to act against all acts of corruption and as we do, we won’t keep it as a secret, we are a public institution. As RSL, we are committed to rooting out corruption. I won’t be surprised if we are not the only institution in the country where its employees are duty bound to declare their assets on an annual basis. Failure to declare may lead to a disciplinary action.
You have mentioned that your biggest priority is to ensure that you build sustainable relationships with stakeholders. How do you plan to that? And how is it important to have such relationships?
Establishing strong stakeholder relationships is of paramount importance for RSL. These relationships extend beyond the taxpayer-government dynamic and encompass a broad spectrum of stakeholders, including businesses, professional associations, tax advisors, and civil society. Collaborative engagement with stakeholders fosters transparency, as it enables RSL to seek input on tax policy changes, share information on compliance requirements, and address concerns in a timely manner. This partnership approach not only enhances tax compliance but it also helps in shaping effective tax policies that reflect the needs and realities of the business community and the broader society. Furthermore, it builds trust and credibility for RSL, which is essential for achieving voluntary compliance and ensuring that tax systems are perceived as fair and equitable. Ultimately, strong stakeholder relationships can lead to a more efficient, accountable, and responsive tax administration, benefiting both the government and Clients alike.
You also mentioned that that you are going to build the RSL team, and create a conducive environment for employees, and clients. How are you going to do that?
Building a cohesive and capable team is of utmost importance and something very close to my heart. My believe is that as an organisation, our most critical and important asset is our people, therefore prioritising them, ensuring that they are well, healthy and have the right attitude at works, makes us winners! Tax matters are inherently complex, and an effective team can navigate this complexity more efficiently and accurately. A skilled and diverse team brings a range of expertise and perspectives, which is crucial for addressing various tax challenges and adapting to evolving operating environment. Building an effective team for RSL involves several key steps such as prioritising their wellbeing, taking care of their mental health, investing in their capabilities and managers and leaders, identifying the specific skills and expertise required, which may encompass tax law knowledge, auditing skills, data analysis, and technology proficiency. Invest in ongoing training and professional development to keep the team up-to-date with changing tax laws and regulations. Moreover, teamwork fosters collaboration, ensuring that individuals work together to achieve common objectives, such as increasing revenue collection, reducing tax evasion, and improving taxpayer services.
You also revealed that you aim to build processes and system for the RSL in order to have one-stop capabilities and make life easier and sufficient. How is that going to happen?
Building efficient processes and systems for tax collection involves a strategic approach. Conducting a thorough assessment of the existing procedures, identifying bottlenecks and areas of improvement are crucial to re-engineering processes. We plan to streamline and automate routine tasks wherever possible, leveraging technology to reduce manual and human intervention to eliminate errors and possible corruption. End to end processes are critical to give a single view of the taxpayer and real time dashboard to ensure that we are capable of providing auto services so that taxpayers do not have to apply for everything even those things that they quality due to their compliance status. We should be able to offer this kind of automated service and ultimately move to a situation where we are have auto auto-compliance capability. Implementation of a robust data management system to centralise and analyse clients’ information is important and aids in risk assessment and compliance monitoring. Simplification of tax forms and reporting requirements to make it easier for clients to fulfil their obligations will go a long way in making it easy to comply. Building a modern, efficient tax collection system requires a commitment to innovation, continuous improvement, and a focus on delivering value to both clients and the government.
How has RSL performed in the past three years in terms of reaching its tax collection targets?
For 2022/2023, the RSL target was M8, 699.78 billion and RSL remitted M 7, 833.57 billion, missing the target by M866.21 million. 2021/2022 the target was M6 643.99 billion and RSL remitted M M7.3 billion, target exceeded by M638 million. 2020/2021 the target was M5 605.37 billion and RSL remitted M6.350.78 billion target exceeded by M745.51million
What do you think needs to be done to improve tax collection?
Improving tax collection requires a number of approaches. As RSL we are investing in our people to have employees who are capable and serve with purpose and passion. I’ve also indicated that we are investing in modernising our systems and technologies to be in a position to have appropriate value creations within our service offerings, also to streamline tax processes, reduce administrative burdens, and enhance data analytics for better risk management. We intend to promote tax education and awareness among clients, ensuring they understand their obligations and the benefits of compliance. Fair and clear tax policies, coupled with effective enforcement mechanisms, help deter tax evasion, tax fraud and encourage voluntary compliance. Finally, fostering a culture of transparency, accountability, and ethical conduct within RSL is vital to gain public trust and ensure that tax revenues are effectively managed and collected for the benefit of our beloved Basotho.
What legacy do you want to leave during your three-year term in RSL?
I hope to leave a legacy where tax is not an RSL thing but a means to an end for our nation. A moon in a dark cloud of that little boy or girl who has no one, but who moves with hope everyday knowing that our taxes will make their life and future possible. I want to move away knowing that we have that level on interconnectivity to the purpose of RSL with Basotho, and in this way, I believe, we would all push towards making sure that the collection of taxes is a success, that RSL is successful and knowing with pride that the success of RSL is the success of Lesotho as a whole.
Being the first woman appointed as the commissioner general, what advice can you give to other women?
As the first woman to lead the tax administration in Lesotho, I want to encourage all women to embrace their aspirations with unwavering determination, that they should know it’s not so much about gender, it is all about your capability and abilities and the support you have around you. I believe women are capable, not because we have to be given free lunch but because when given a fair playing field, we can effectively compete and contribute with our God given talents and capabilities.
Accordingly, your gender should never limit your potential; rather, it should fuel your ambition to break down barriers and pave the way for others. Remember that every challenge you face is an opportunity to prove your strength and resilience. Embrace your unique perspective and skills, for they bring diversity and fresh insights to the table. Let your leadership be a testament to the fact that women can excel in any field, shattering glass ceilings and forging a path toward a more inclusive, diverse and equal future for all. Together, we can empower, innovate, and lead with grace and excellence. The journey may be challenging, but your legacy will inspire generations to come.
