Maseru, Feb. 16 — Runners face delays at border posts struggling to deliver goods to customers on time.
RSL explains the issue to taxes not being paid at point of purchase, causing lengthy clearance processes.
Mr. Thabang Loko, a spokesperson of Revenue Services Lesotho (RSL) mentioned that every person crossing the border into Lesotho is required to pay a 15% Value-Added Tax (VAT) on goods from South Africa if no tax was paid in SA.
He noted that if tax was already settled in SA, no further tax is required to be paid in Lesotho. However, goods originating from countries other than South Africa are subject to tax. He clarified that tax is applied to each individual item not the total value of goods being carried.
Mrs. ‘Matlelima Sello, a runner based in Durban, explained that shops in South Africa that do not charge tax confuse them. This leads to unexpected tax bills at the Lesotho border, causing budget problems. The delays at border gates due to tax payments also slow down delivery of goods to customers, hindering business growth.
Sello urged the government to establish an agreement with South Africa, requiring all shops to collect VAT when runners purchase goods. This would simplify border processes, especially for runners with limited understanding of tax-based border rules.
Mrs. Masebolelo Polile also indicated that she is one of the runners who lost customers because of the goods delaying their arrival in Lesotho. She mentioned that this problem makes it difficult for them to cover other needs of their children since they are self-employed.
She added that paying tax at the point of purchase would make the process smoother at the border gates and help them to transport goods to their customers on time, enabling them to retain customers and support their family.
Runners urge Lesotho and South Africa to simplify tax collection, easing border challenges and boosting their livelihoods.
ENDS/GM/tl
