(MENAFN- The Post) MASERU – FINANCE Minister Dr Retšelisitsoe Matlanyane on Monday said she will ask parliament to come up with fresh laws to plug tax leakages.
Dr Matlanyane was speaking during her budget presentation in parliament.
She said she will modernize Lesotho's tax collection through digitization as part of her revenue collection strategy.
She wants parliament to prioritise the passing of the Income Tax Amendment Bill and the Tax Administration Bill.
Dr Matlanyane said the Revenue Services Lesotho (RSL) will launch e-filing for all taxpayers for Pay-As-You-Earn (PAYE), Value-Added Tax (VAT), and Corporate Income Tax (CIT), through the Lesotho Tax Modernisation Project.
“The RSL shall introduce VAT fiscalisation through the e-invoicing solution, to fiscalise all transactions in the wholesale and retail sectors, thereby eliminating the need for output VAT audits and easing the burden of compliance for taxpayers,” Dr Matlanyane said.
On the bi-lateral tax cooperation, Dr Matlanyane announced that Lesotho and the United Arab Emirates have concluded negotiations and are expected to sign a Double Taxation Agreement (DTA) during the 2023/24 financial year.
She said the Integrated Revenue Management System and Cashless Collection of Revenue will be implemented during this financial year to ensure that government moneys are protected from leakages.
“Non-tax revenues will be collected through the IFMIS (Integrated Financial Management Information System) system that will issue digital receipts,” she said.
“In order to minimise cash handling,” she said,“we shall utilise cashless collections through the Mobile Network Operators and the banks using all avenues that will eliminate cash handling and promote accountability.”
She said a pilot programme of six ministries is already in operation on computerised receipting of the revenue.
She told parliament that her ministry held a successful Hackathon competition supported by development partners to design and produce the digital signature.
“The transition to digital signatures will minimise fraud and theft of government funds and will improve internal controls,” she said.
Dr Matlanyane said the government will also implement a diaspora policy in order to strengthen diaspora engagement and participation in the development of the country through investments, tourism, skills transfer and humanitarian projects amongst others.
Staff Reporter
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