MASERU — The Lesotho Revenue Authority (LRA) on Thursday signed a memorandum of understanding with the Zambia Revenue Authority (ZRA) aimed at forging cooperation in revenue administration.
The agreement will also allow the two revenue authorities to work together on issues of tax policy formation and the scrutinising of tax legislative proposals.
The agreement will also support capacity building programmes, improve information exchange, provide for knowledge transfer and the adoption of innovative approaches in tax administration.
The pact was signed by the LRA’s commissioner general Thabo Letjama and his Zambian counterpart, Wisdom Nhekairo.
Speaking at the signing of the agreement, Nhekairo said the deal will contribute to the strengthening of capacity to administer revenue laws resulting in increased compliance and tax revenue collection for both parties.
“The parties will cooperate in the area of revenue administration through exchange initiatives such as exchanging of staff, attachments and engagements, and through undertaking joint cross-border taxation initiatives,” Nhekairo said.
The agreement is also expected to see the LRA and ZRA cooperate in undertaking joint cross-border taxation initiatives.
The aim of this is to promote tax compliance in the two countries and provide an understanding of the common challenges which they face in tax administration.
ZRA board chairperson Christopher Mundia said the sharing of common goals would enhance and improve performance to meet Lesotho and Zambia’s expectations.
“It is my sincere hope that ZRA and LRA will work together and develop strategies and determine modalities for implementation of all identified programmes and initiatives contained in the agreement,” Mundia said.
Letjama said the agreement will allow the two institutions to learn from each other and cement their relationship.
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