As Lesotho’s Revenue Services (RSL) prepares to roll out its new Taxpayers’ Identification Number (TIN) system on April 1, concerns are mounting over the country’s digital readiness and the potential impact on cross-border trade.
While RSL has granted exemptions for certain exporters, uncertainty remains regarding profit-sharing demands and system integration issues, particularly for transporters and clearing agents operating from South Africa—the origin of most of Lesotho’s imports.
New Requirements and Compliance Challenges
Under the new system, foreign exporters and agents must now work with a Lesotho-based agent approved by the Agents of Foreign Firms Association of Lesotho (Affal)—the only officially sanctioned entity for this role.
However, concerns over potential profit-sharing models have led to non-compliance among South African agents, who fear financial strain on transporters and their clients.
To ease the transition, RSL has offered exemptions for franchises and sole providers with established service-level agreements. But how this will be implemented remains unclear.
System Readiness in Question
According to Stephen Segal, divisional director of clearing and forwarding at Value Logistics, RSL isn’t prepared for the system’s launch.
“Their computer systems have been changed, but they don’t seem to know how they’re going to handle exemptions,” Segal said.
He warned that without proper integration with Lesotho’s new clearing processes, exporters—even those granted exemptions—may face entry bans if they don’t have a TIN.
Previous Delays and Digital Bottlenecks
This isn’t the first time RSL has postponed implementation. The initial launch, planned for September 1, 2024, was pushed back to January 1, 2025, due to synchronization issues with the Automated System for Customs Data (Asycuda)—a system used by countries in the Southern African Customs Union (Sacu).
Now, stakeholders are pushing for a further six-month delay to avoid potential trade disruptions.
What’s at Stake?
Despite concerns, Segal encourages compliance, advising businesses to negotiate with Lesotho-based representatives.
“If it’s just about getting a TIN, which costs around R4,000 per month, then it’s worth complying,” he said. “But if Affal-approved agents demand profit-sharing based on shipment volume, that’s another issue entirely.”
For some exporters, adopting the new system has proven beneficial—with businesses reporting higher sales and improved administration efficiency when dealing with Lesotho.
However, failure to address system inefficiencies could spell trouble for Lesotho’s economy.
“Big tech companies, for example, rely on South Africa for spare parts,” Segal warned. “If those shipments are held up, essential equipment could fail, affecting businesses and households across Lesotho.”
With April 1 fast approaching, businesses, agents, and the Lesotho government must work together to ensure a smooth transition—or risk disrupting trade flows that are vital to the country’s economy.
