By: Mpho Shelile
Maseru – The Revenue Services Lesotho (RSL) and the Land Administration Authority (LAA) announce their partnership to launch the Automatic Compliance Project (ACP), a ground-breaking initiative which aims at modernizing tax collection and land administration processes in Lesotho.
The Automatic Compliance Project is designed to automate compliance processes, allowing for seamless integration of land data with tax records in the daily lives of taxpayers through system integration.
It is meant to achieve all this through enhancing operational efficiency, improving data accuracy, and strengthening revenue collection through innovative technology.
This integration is expected to significantly improve the ability of RSL to effectively collect taxes, allowing for the population of Pay as You Earn (PAYE) tax returns, identify non-compliance, and conduct comprehensive data analysis, ultimately contributing to the economic growth and development of Lesotho.
The ACP is anchored on several key objectives that align with the strategic goals of both the RSL and LAA. The ACP will make it easier for the RSL to identify discrepancies between land ownership records and tax declarations. This will help in detecting underreported or unreported incomes related to land transactions and properties, thereby reducing tax evasion.
Commissioner General of the RSL, Mrs. Mathabo Mokoko, expresses optimism about the project’s impact, “The Automatic Compliance Project represents a significant step forward in our efforts to build a fair and transparent tax system in Lesotho. By leveraging cutting-edge technology, we are not only improving our ability to collect revenue but also fostering a culture of compliance among taxpayers,” she says.
Adding that by enhancing Data Accuracy and Transparency, the integration of land data with tax records will provide a single, unified source of information, reducing discrepancies and improving accuracy. “This initiative will also enhance transparency in property ownership and land transactions, ensuring all data is consistent across both agencies,” she notes.
Mrs. Mokoko further states that this new project towards increasing efficiency in revenue collection, “with automation, the RSL expects to reduce manual processes, leading to faster and more efficient revenue collection. The system will automatically cross-check land ownership details against tax records, ensuring that all taxable transactions are accurately captured and taxed accordingly.”
Strengthening Data Analytics Capabilities: The ACP will empower RSL and LAA with advanced data analytics tools to better understand taxpayer behaviour, forecast revenue trends, and identify areas where compliance can be improved. This will allow for more targeted policy-making and strategic planning.
The ACP will leverage digital technologies such as Geographic Information Systems (GIS), blockchain, and cloud computing to establish an automated system for data sharing and compliance monitoring. This system will be interconnected between the RSL and LAA, allowing for real-time updates and seamless data flow.
To enhance data security and prevent fraud, blockchain technology will be employed to create tamper-proof records of land transactions and tax payments. This will ensure that all records are immutable and verifiable by both agencies, as well as the public.
The project will utilize cloud-based platforms for storing and processing large volumes of data. This will not only improve accessibility but also ensure that data is safely backed up and can be accessed remotely by authorized personnel.
On expected benefits for Lesotho, the ACP is projected to increase the overall tax revenue collected by the government, which can be reinvested into public services and infrastructure.
Property owners will also benefit from more accurate and accessible records, reducing disputes over land ownership and boundaries. This could also facilitate smoother transactions in the property market.
On economic development, the ACP aligns with national efforts to promote sustainable economic development by creating a fair and efficient tax system, which is a cornerstone for attracting both domestic and foreign investment.
Director General and Chief Executive LAA, ‘Mataeli Makhele Sekhantso highlights the benefits for land administration: “The ACP will revolutionize how we manage land data in Lesotho, ensuring that our records are accurate, up-to-date, and accessible. This is essential for building public trust and supporting the country’s development goals.”
As RSL and LAA prepare to launch the ACP, they are also working on public awareness campaigns to educate taxpayers and property owners about the new system, its benefits, and their responsibilities under the new framework. The project is expected to go live in early 2025, following a series of pilot tests and stakeholder consultations.
By embracing technology and fostering inter-agency cooperation, Lesotho is taking a proactive step toward building a more efficient, transparent, and equitable tax and land administration system, ultimately contributing to the nation’s long-term growth and prosperity.