The Minister of Finance and Development Planning, Dr. Rets’elisitsoe Matlanyane, has proposed a 0.5 percent increase in Value Added Tax (VAT). This announcement was made during her financial policy presentation in the National Assembly on Wednesday.
According to Dr. Matlanyane, the South African government has proposed a similar VAT increase of 0.5 percent. She emphasized that if South Africa proceeds with the increment, it could lead to administrative challenges at border posts during the declaration of goods.
“Although we are not sure if South Africa (SA) would adopt the VAT increment, we will face a challenge as it will be 15.5 percent while ours will be 15 percent,” she stated.
The proposed adjustment aims to align Lesotho’s VAT rate with regional standards, potentially easing cross-border trade administration. However, the final decision on the increment is yet to be determined, pending further deliberations and developments in South Africa’s tax policy.
As discussions on the proposal continue, businesses and consumers in Lesotho are closely monitoring the situation, considering the potential economic implications of the VAT adjustment.
