Maseru- In a step towards modernizing the tax landscape in Lesotho, Revenue Services Lesotho (RSL) has officially launched the Automatic Compliance Project (ACP). This innovative system is set to revolutionize how taxes are handled, making the process simpler and more efficient for both taxpayers and tax administrators.
Speaking at the launch, Mathabo Mokoko, the Commissioner General of RSL, described the event as a breakthrough for Lesotho’s tax ecosystem.
“This project represents a significant milestone in our efforts to streamline and modernize the tax compliance process for businesses and individuals alike,” she stated, highlighting the importance of the ACP in reducing the complexity and time-consuming nature of tax compliance.
Tax compliance in Lesotho, like in many countries, has often been seen as a daunting task. Businesses and individuals have had to navigate a web of regulations, forms, and deadlines, often resulting in errors and inefficiencies.
“This does not only creates a burden for taxpayers but also for tax administrators,” Mokoko noted, adding that tax authorities often waste valuable resources correcting mistakes or chasing non-compliance.
The Automatic Compliance Project is designed to address these challenges head-on. By leveraging technology like artificial intelligence and data analytics, the ACP simplifies and automates the entire process. Tax information will now be collected, processed, and verified more efficiently, reducing the likelihood of human error and ensuring that taxpayers can meet their obligations on time.
“This will allow us to better identify and address non-compliance, ensuring that everyone pays their fair share,” said Mokoko.
The system aims to foster a more equitable tax environment where compliance becomes automatic and non-compliance requires deliberate effort.
Mokoko emphasized that the transformation will nothappen overnight, but RSL is taking it step by step. The first phase, known as the Minimum Viable Product (MVP) 1, focuses on auto-populating PAYE tax returns for RSL, the Land Administration Authority (LAA), and select government ministries.
“This is the beginning of a journey,” Mokoko remarked, acknowledging the enormity of the task ahead.
She proudly announced that the two initial PAYE taxpayers, RSL and LAA, have already integrated with the ACP system, enabling automatic sharing of payroll data and pre-filling PAYE returns.
“This marks the beginning of a new era in tax compliance for Lesotho,” she declared, describing how the system will make tax compliance smoother, faster, and more convenient for everyone involved.
However, not all targets have been hit immediately. Mokoko mentioned that integrating with government ministries was delayed due to restructuring following the 2022 general elections. Yet, she remained resolute, expressing confidence that other PAYE taxpayers, including the government, would eventually join the system.
As the system is rolled out, feedback from users has been overwhelmingly positive. ‘Maleru Tebello, an assistant accountant at LAA, shared her first experience using the ACP system to file PAYE returns for the month of August.
“I logged into the website, and the Excel sheet was already reformulated with accurate figures,” Tebello explained.
She emphasized the benefit of eliminating human errors, which are common when manually preparing tax forms.
“There were no challenges I encountered while using the system, though it was my first time, which shows there are no complications in using it,” Tebello said, praising the system for its user-friendly interface.
Mokoko closed her speech by extending her gratitude to all who made the project possible, particularly the leadership of LAA, who played a crucial role in its implementation. She described the LAA’s decision to be among the first to integrate with the ACP as a positive example for others to follow.
“We deeply appreciate such collaboration. Re Tjena Ka Lona,” she expressed with pride.
Looking to the future, Mokoko emphasized that the launch of the ACP is just the beginning. RSL is committed to continuous innovation and adapting to the ever-changing tax landscape.
“We will continue to innovate and adapt, always striving to improve the experience for our taxpayers,” she concluded, calling for collective effort to make automatic tax compliance a reality for all.
With the launch of ACP, the hope is that more organizations and individuals will benefit from the streamlined processes, ultimately leading to a more equitable tax environment for everyone.
