Africa-Press – Lesotho. The portfolio committee on the Economic and Development Cluster presented The Consolidated Report on the Annual Budget and Estimates of Revenue and Expenditure for the Financial Year 2021/2022 on March 30th at
the National Assembly. The committee was seized with the budget after its presentation on February 17 by the Minister of Finance. In its report, the Economic and Development Cluster said it has “noted with great concern that the
2021/2022 Budget has been prepared under very difficult circumstances due to
the Covid-19 outbreak”. The Committee’s report noted that for 2020/2021 fiscal year, the government had directed funds and reallocated them to the fight against the Covid-19.
These funds were both from the Capital and Recurrent Expenditure. “The Committee recommends that the Auditor-General should be furnished with financial statements of the monies
used in this regard, for her to prepare a Special Report and such report should be submitted to the Minister of Finance for tabling in the House. Thereafter,
such report will stand referred to a relevant Committee for consideration pursuant to Standing Order No.95 (1) (d),” reads the report in pertinent part.
The Committee has applauded the government’s move to mount the performance-management which the Minister of Finance said it will be roll- out in the civil service.
It has also commended the government on the proposed cashless payment method highlighting that it will safe keep the government’s revenue. Some of the Ministries’
lack of “commitment” performance on Non-Tax Revenue did not go down well with the committee as it has recommended that the responsibility be shoulder by the
Lesotho Revenue Authority (LRA) in order to enhance the government’s collections. The Committee expressed concern over the “escalating” public debt decrying lack of consultations
prior to applying for loans. It has recommended that the parliament be consulted “prior to the country getting into any public debt”. It had also warned that the “delay to release funds by the Ministry of Finance affects the
performance of ministries negatively”. In a correspondence addressed to the Clerk of the National Assembly by the Lesotho Chamber of Commerce and Industry (LCCI) post budget speech, the industry has taken swipe
at the proposed levy on alcohol and tobacco amongst others. The LCCI holds that, “The current proposed alcohol and tobacco levy will not assist the government
to increase revenue as it is not supported by any research or studies that could properly guide it. As it has been included in tax policy proposals, the
government is advised to conduct consultations with the industries concerned and carry proper research that can clearly guide any policy proposal towards
those products. ” Further punching holes on the budget, LCCI accused the government on what they termed as “no aligned policy” adding that the “current tax rates are inconsistent”.
They also mentioned the misaligned tax policy on agricultural products, mentioning that some products are zero-rated while other are taxed. The commerce industry
advocated for “clear” government policies. It showed that the 2021/2022 budget is “built on” the previous budget which they argued was hampered by the
outbreak of the Covid-19. They also advised the government to dispose the land to private developers, a move which the LCCI deems will generate income and more tax revenue for the government.
The letter further reads thus: “We are one country that is still operating on very old laws generally but if [the] government could modernize its tax laws, more revenue could be generated.”
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