Revenue Services Lesotho (RSL) recently hosted a symposium on tax and customs international instruments as part of its on-going “Mphahlolle” Awareness Campaign. The event, held on November 14, 2024, at the Mountain View Hotel in Leribe District, gathered business leaders, entrepreneurs, and taxpaying citizens to discuss the benefits of international trade agreements and tax treaties that impact Lesotho.
Speaking at the event , RSL’s Commissioner General Mathabo Mokoko emphasized that the symposium was a critical component of the “Mphahlolle” campaign, which was launched in December 2023 and is now expanding into various districts across the country. Mokoko reiterated RSL’s commitment to fostering business growth and expansion in Lesotho.
“Our goal is to raise awareness about the numerous benefits businesses can gain from the various international agreements Lesotho has signed and ratified, particularly tax treaties and trade agreements,” said Mokoko. “This symposium is an opportunity to provide valuable guidance to traders, aspiring entrepreneurs, and the wider taxpaying community.”
During the symposium, Makoena Maqhobela, Manager of International Acts Cooperation at RSL, delivered a comprehensive presentation on tax treaties. Maqhobela explained that tax treaties are international agreements made between two or more countries and are designed to be incorporated into domestic law on a reciprocal basis. These treaties aim to remove tax barriers to cross-border trade and investment.
“The primary goal of tax treaties is to reduce tax rates, lower compliance costs, and prevent fiscal evasion,” said Maqhobela. “They help facilitate smoother international business transactions by eliminating double taxation, ensuring fair tax treatment for all parties involved.”
She also stressed that any business activity conducted within Lesotho’s borders, even if the business is based in another country or owned by foreign nationals, is subject to taxation under the country’s laws.
Maqhobela cautioned attendees about the legal risks associated with engaging in illegal business practices. “Engaging in illegal activities puts businesses at risk of falling afoul of the law,” she warned, urging businesses to comply with local tax regulations and make use of the legal frameworks provided by international agreements.
The symposium aimed to educate attendees on the importance of understanding these international agreements and the role they play in promoting economic development through increased cross-border trade and investment.
Deputy Commissioner of Customs, Adesory Services Thapelo Moloi, also addressed the gathering, reinforcing RSL’s role in supporting businesses through regulatory guidance and providing the tools necessary to navigate the complexities of international trade.
The “Mphahlolle” campaign will continue to spread awareness and ensure that businesses and individuals are informed about their tax obligations and the opportunities available to them through international cooperation.
