Maseru, May.27 — Street vendors across Lesotho face the shock of sudden tax obligations, threatening their already struggling informal stalls.
With low foot traffic and soaring costs, many vendors say they cannot afford the new levies, prompting fears of mass shutdowns and a loss of their only livelihood.
The informal economy is their lifeline; a gritty hustle they relied on when there were no other formal jobs available. For the past few years making ends meet in the informal economy had already become an exhausting battle against rising poverty and unpredictable weather, this new financial demand felt like the final straw.
Speaking in an interview, Ms. Ponts’eng Sefali said this is going to be stressful saying she is just trying to sell the fruits so her children can eat. What is there to tax?
“What profits are they talking about? Some days I sit here from six in the morning until the sun goes down and I make less than M50. Business is so bad that people are only buying what they absolutely need. Many days I go home with wilted vegetables that I have to eat myself because no one has the money to buy them,” she said.
Another Mr. Thabo Shata said, “we are struggling to pay the daily fees to the taxi rank and the Maseru City Council, how do they expect us to hand over more money to the government? If they force this on us, I might be forced to close shop entirely as there will be nothing left for the family”.
“We cannot pay tax on money we do not even make. It is not just us who will suffer; it is our entire community that relies on us for their daily bread”.
Moreover, Mrs. Marethabile Motanyane reiterated saying the streets are the only place they have to put bread on the table. She said if this is forced on them, she might be forced to close shop entirely.
“Business is simply not good anymore”, she said, her voice shaking with frustration. “People don’t have money to spend. Every day is a struggle just to afford new stock from across the border. if we are forced to start giving a portion of our coins to the government, how will I buy food for my grandchildren tonight?”
On the other hand, Revenue Services Lesotho (RSL) Marketing Officer Mr. Thapelo Sephiri said the plan is available on engagement sessions to sensitize and encourage vendors to register for the Simplified Business Taxation (SBT) regime.
He said it is during the sessions that they will share the implementation period and tax thresholds depending on different businesses.
Tax eligibility generally applies to anyone including individuals such as employees, sole proprietors and directors and business entities who earns an income, generates profits or conducts transactions within a country’s jurisdiction, with specific thresholds depending on individual’s local tax authority.
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