Maseru, Mar.21—The Value Added Tax (VAT) set to be implemented next month is going to hit hard on low income and no income earners, says the former Lesotho Institute of Accountants (LIA) President Mr. Lefu Mokaoane.
On Wednesday the Minister of Finance and Development Planning Dr. Rets’elisitsoe Matlanyane had proposed a 0.5 percent increase of VAT and the motion got more support from the members.
Value-Added Tax is a consumption tax levied on goods and services at each stage of the supply chain where value is added.
Mr. Mokaoane said even if people could see 0.5 percent as little, the problem is that it is paid every time one makes a purchase saying that it is not only going to be in food commodities but in utilities such as electricity and water as well and as a result have an immense impact…
