MASERU — The Lesotho Revenue Authority (LRA) last Wednesday began implementing new individual tax thresholds for taxpayers for the new fiscal year.
In a statement last week the LRA said it was effecting changes in income tax for individual taxpayers and would issue new tax tables for the new fiscal year.
The new fiscal year began on April 1.
LRA public relations officer, Kheleli Manyathela, said the tax credit has been increased from M4 500 to M5 000 per annum or from M375 to M416.67 per month.
The lower tax group has also been increased from M37 378 to M40 368 per annum or M3 114.83 to M3 364 per month.
“This means that an individual will pay tax at a monthly income above M1 893.93 compared to M1 704.54 in the last fiscal year,” Manyathela said.
Manyathela said monthly incomes between M1 893.93 and M3 364 will be taxed at a rate of 22 percent.
In the past the 22 percent rate was applied to incomes between M1 704.54 and M3 114.83 per month.
“Any income above M3 364 (will be) taxed at 35 percent,” Manyathela said.
Manyathela said the monthly tax credit of M416.67 will reduce the tax liability if all individuals earning more than M1 893.93.
“These changes apply to employees, sole traders and professionals. These are people taxable under the second schedule of the income tax act 1993.”
The LRA spokesman said they had since issued a circular and new tax tables to all employers to enable these changes to be effected at the end of this month.