Letsatsi Selikoe
IN a significant move towards digitalization of its revenue collection systems, the Revenue Service Lesotho (RSL) launched the Automatic Compliance Project (ACP) yesterday aimed at easing payments of the Pay As You Earn (PAYE) tax strand.
The groundbreaking initiative marks a crucial step in streamlining and modernising tax compliance, particularly for employers, by leveraging advanced technology. It allows the automatic payments of PAYE to the RSL by employers and individuals.
The ACP was piloted last month using Land Administration Authority (LAA) employees.
The launch event, held at Victory Hall in Maseru, was attended by key stakeholders, including RSL Commissioner General, Mathabo Mokoko, who highlighted the importance of the new system in simplifying tax obligations.
“Our ultimate goal with this project is simple yet ambitious. We aspire to transform compliance into an automatic process, making tax compliance a default option,” Advocate Mokoko said.
“By opting into this system, taxpayers are not only choosing convenience but also contributing to the digital transformation of Lesotho’s economy. This project is just the beginning of our journey towards a more efficient and effective tax system,” she added.
The ACP is designed to alleviate the complexities and time-consuming nature of tax compliance by automating the collection, processing, and verification of tax information. This automation will reduce the burden on taxpayers and improve the efficiency and effectiveness of tax administration.
RSL Project Analyst, Mr Chaka Tsenase, further elaborated on the capabilities of the ACP, noting that it utilizes existing company data to display essential tax information on a single page.
“This innovative feature allows taxpayers to review and approve their details with ease, eliminating the need for manual calculations and spreadsheets, which are often prone to errors.
“The ACP launch represented more than just the introduction of a new system; it signifies the beginning of a journey towards fully integrated, technology-driven tax compliance in Lesotho. Initially, the project focuses on the auto-population of PAYE returns for RSL, LAA, and government ministries, with plans to extend this solution to other PAYE taxpayers, including the government, in the future.
“The Automatic Compliance Project will pave the way for more efficient tax management in the Kingdom of Lesotho. Employers are encouraged to adopt this new system, ensuring that they remain compliant while enjoying the benefits of technology-driven solutions.
“As Lesotho moves forward, we hope for more collaborations like this one we have with LAA, which signifies a commitment to supporting businesses in their journey towards a more efficient and tech-savvy future,” Mr Tsenase said.
The LAA’s Assistant Accountant, Maleru Tebello, shared her positive experience of piloting the ACP system.
“The transition has been seamless, as every figure was calculated for me, ensuring accuracy in our tax payments,” she said.
