Report On The Income Tax (Amendment of Monetary Amounts) Regulations, 2018


REPORT ON THE INCOME TAX (AMENDMENT OF MONETARY AMOUNTS)
REGULATIONS, 2018
PRESENTED
BY .
THE PORTFOLIO COMMITTEE ON THE ECONOMIC AND DEVELOPMENT CLUSTER ·
National Assembly P. 0. Box 190
Maseru 100
Phone: +266 22323035 Fax: + 266 22310434


INTRODUCTION
On Friday 20th April, 2018, the Hon. Minister for Finance tabled the Income Tax (Amendment of Monetary Amounts) Regulations, 2018 in the House. The Regulations were referred to the Portfolio Committee on the Economic and Development Cluster for consideration in terms of Standing Order No.100 (3). The Committee invited the Ministry and Lesotho Revenue Authority (LRA) to a briefing session in accordance with Standing Order No. 101 (2).
The Committee, therefore, presents this report to the House for consideration.

  1. MINISTERIAL BRIEF Income Tax (Amendment of Monetary Amounts) Regulations, 2018 are made pursuant to Section 212(1) (C) of the Income Tax Act, 1993.
    The Ministry indicated that the intention of the Regulations is to protect disposable income of low income earners from being eroded by tax as reflected in the Budget Speech of 2018/2019. The Regulations will provide for the adjusted personal tax credit and chargeable income of the lower and upper threshold, in the process ensuring that low income earners remain outside the tax bracket. The personal credit has been adjusted from M6, 960.00 to M7, 260.00 and taxable amount increased from M58, 680.00 to M61, 080.00 per annum.
    The Regulations aim to repeal the Income Tax (Amendment of Monetary Amounts) Regulations, 2017 and shall be deemed to have come into operation on the 1 st April, 2018.
  2. Committee’s Decision The Committee allowed the Regulations.
  3. Recommendations The Committee recommends the approval of these Regulations and the adoption of this report by the House.

    Members of the Committee
  4. Hon. S. T. Rapapa (chairperson)
  5. Hon. L. S. Litsoane
  6. Hon. L. R. Mahase
  7. Hon. S.D .Mangobe
  8. Hon. T. J. Sophonea
  9. Hon. M. J. Maime
  10. Hon. M. P. Maqelepo
  11. Hon. L. C. Hlomelang
  12. Hon. L. K. Mokoma10.Hon. L. Moramotse
  13. Hon. M. Malefane
  14. Hon. M. C. Hlao
  15. Hon. T. T. Mosena
  16. Hon. M. R. Khati
  17. Hon. M. Hlalele
  18. Hon. P. D. Mafereka
  19. Hon. T. P. Mokeretla
  20. Hon. N. Motsamai
  21. Hon. S. H. Sekatle
  22. Hon. T. L. Mokhosi
  23. Hon. M. Tlali