RSL ACHIEVES 12.5 PERCENT GROWTH IN REVENUE
The Revenue Services Lesotho (RSL) has achieved a remarkable 12.5% growth in revenue collection for the 2023/24 financial year. This growth comes despite missing their target by 9.3% and the challenging economic environment.
This was said by Commissioner General (RSL) Mrs ‘Mathabo Mokoko in a media briefing held in Maseru on Wednesday.
Mrs. Mokoko highlighted that the economic outlook at the beginning of the financial year projected a growth rate of 2.1%, but in reality, the economy only grew by about 0.9%. This lower-than-expected growth negatively affected revenue collection across various sectors.
The construction sector, which was expected to contribute significantly to economic growth through the Lesotho Highlands Water Project (LHWP), had minimal impact, contributing only 2.7% to Gross Domestic Product (GDP). This had a direct impact on tax collection.
While the services sector was projected to benefit from the construction sub-sector, the gains were offset by elevated consumer prices. Business services, for example, contributed about 2.1% to GDP, affecting income tax collection.
The mining industry was also expected to experience growth due to an improved market outlook for rough diamonds and rising commodity prices. However, the performance of the sector was constrained, resulting in revenue loss and the need to pay out perpetual refunds to the mining sector.
Additionally, inflation rates, which were expected to gradually diminish, remained at 7.3% since February 2024. This negatively affected collections from the wholesale and retail sector, resulting in lower-than-expected VAT collections.
Despite these challenges, Mrs. Mokoko emphasized that revenue collection was boosted by the implementation of the Tobacco and Alcohol Products Levy. She also highlighted that the Tax Administration Bill (TAB), Value Added Tax (VAT) Amendment Bill, and the Income Tax Amendment Bill, if promulgated into law and implemented during the 2023/24 financial year, would have further improved revenue collection.
The Revenue Services Lesotho (RSL) demonstrated resilience and determination in achieving a 12.5% growth in revenue collection for the 2023/24 financial year. Despite the challenging economic environment and missed targets, RSL attributed its success to the compliance of taxpayers and strategic initiatives implemented throughout the year. The organization also highlighted various achievements, including increasing the number of taxpayers, facilitating trade, and embracing technology for efficient tax processes.
Source: LENA 10/04/2024
