Maseru– The Tax Modernisation Project to be implemented by the Lesotho Revenue Authority (LRA) will strengthen Lesotho’s tax administration capacity, said the Minister of Finance, Dr. Moeketsi Majoro during the loan agreement signing ceremony between the government of Lesotho and African Development Bank (ADB).
The loan agreement to the tune of M85 million was signed at an event held in Maseru on Thursday.
The project is intended to improve tax compliance by introducing an online means of tax filing.
“This will simplify things and put an end to the need to physically visiting the Lesotho Revenue Authority for tax filing,” he said.
According to Dr. Majoro, the loan has a five-year grace period, payable in 25 years at an interest of 1%, service fee 0.75% and 0.5% commitment fee.
The ADB Deputy Director General, Dr. Josephine Ngure said the project is aimed at strengthening the effectiveness of tax administration to create fiscal space by expanding the tax base, and modernising collection and compliance procedures.
She noted that this project is part of the Bank’s continued support to the government’s policy priorities as guided by the current National Strategy Development Plan (NSDP).
“The project supports the government’s commitment to fiscal consolidation and domestic revenue enhancement measures within the medium term expenditure framework,” Dr. Ngure indicated.
According to Dr. Ngure, the project is expected to deliver quantifiable results such as increased tax revenues as reflected in the tax to GDP ratio, a reduction in cost of compliance, time to register for tax and time to pay tax.
The LRA is expected to implement this project by putting in place the core implementation team and operationalizing the project governance and oversight mechanisms. Lena