New pact targets tax compliance, jobs

The Revenue Services Lesotho (RSL) has signed a memorandum of understanding (MOU) with the Federation of Agents of Foreign Firms (FAFF), marking a significant step in strengthening tax compliance and promoting fair business practices in the country.

Speaking at the signing ceremony, RSL Commissioner General, ’Mathabo Mokoko, described the agreement as a milestone in building unity and collaboration to advance Lesotho’s economic growth.

“This partnership aims to enhance regulatory compliance, promote transparency, and foster a business-friendly environment. By ensuring fairness and accountability, we create conditions that stimulate investment and economic development,” Mokoko said.

The key focus of the MOU is support for Small and Medium Enterprises (SMEs), which make up a large portion of Lesotho’s economy. “We want to facilitate access to finance and formalise SMEs. Strengthening this sector means unlocking jobs and opportunities for Basotho,” she noted.

The Commissioner General stressed that the agreement was not solely an RSL initiative but the product of collaboration across government. Among institutions involved were the Ministry of Employment, Ministry of Trade, Industry and Business Development, Ministry of Local Government, Chieftainship, Home Affairs and Police, as well as the Directorate on Corruption and Economic Offences.

Together, these institutions have created a framework to improve compliance, enhance transparency, and nurture a fairer business climate while generating employment.

Mokoko stated that the scope of the MOU is wide-ranging. By integrating systems and strengthening cooperation, FAFF will provide RSL with key data to reinforce compliance and mobilise much-needed domestic revenue. This ensures that foreign firms and their agents operate within established laws, upholding the highest standards of accountability

She explained that revenue collection is complex and cannot be achieved by one institution alone. “Partnerships are vital to enhancing compliance, improving efficiency, and ensuring government has the resources to deliver services to Basotho,” she said.

Beyond meeting revenue targets, Mokoko stressed that such collaborations are about empowering institutions to build resilience and improve the well-being of citizens.

“When we unite around a common purpose, we can achieve much more. This agreement is not just about RSL or FAFF, it is about securing a better future for the nation,” she added.