In the media
Tax avoidance study used as an argument in favor of Lesotho’s growth and stability

The Kingdom of Lesotho is classified by the UN as one of the least developed countries in the world. It is entirely reliant on South Africa for all imports and exports, while a few commodities help supplement its income. Lesotho has suffered politically in recent years. It has stumbled from election to coup, to coalition government to collapse in a destructive cycle.

In an article in the Daily Asset, Talitha Bertelsmann-Scott of the South African Institute of International Affairs outlines four critical areas that the new government of Lesotho should focus on to ensure peace, stability, and prosperity.

One of these steps is to reduce revenue dependency on the South African Customs Union revenue pool by focusing on tighter tax collection and encouraging greater economic activity. The author draws on a 2017 WIDER Working Paper by Alex Cobham and Petr Janský, which estimated that Lesotho lost about US$20 million or just under 1% of GDP to tax revenue losses.

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