REPORT ON THE CUSTOMS AND EXCISE (AMENDMENT) REGULATIONS, 2019
THE PORTFOLIO COMMITTEE ON THE ECONOMIC AND DEVELOPMENT CLUSTER
National Assembly Phone: +266 22323035 P. O. Box 190 Fax: + 266 22310438
- INTRODUCTION On the 21st October, 2019, the Hon. Minister of Finance tabled the Customs and Excise (Amendment) Regulations, 2019 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 the 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.
- MINISTERIAL BRIEF
In making their submission, the Ministry stated that Customs and Excise (Amendment) Regulations, 2019 are made pursuant to Section 123 (1) (j) and (n) of the Customs and Excise Act 1982.
The intention of these Regulations is to revise license fees because they are too low and also to adopt to best international practices and standards. The Ministry further indicated that traders do not renew their licenses when due because of the low penalties. These Regulations are, therefore, meant to address challenges such as this one and the growing economy. The Ministry also assured the Committee that Ministries and other relevant stakeholders were consulted before and after drafting of these Regulations and that there are no financial implications to be incurred during their implementation.
The Ministry proposed that license fees be increased from previous fees to the current level based on present conditions with a view to improve revenue collection. (Annex 2)
- COMMITTEE OBSERVATIONS
The Committee noted that the prices are valid for a period of a year; 1st January to 31st December and that while benchmarking, Lesotho is the first country in the SACU Region to adopt this practice as Botswana and South Africa are quota free while Swaziland and Namibia have not amended their pricing legal regimes.
The Committee recommends for the approval of these Regulations and the adoption of this report by the House.
Members of the Committee 1. Hon. S. T. Rapapa (chairperson) 2. Hon. L. R. Mahase 3. Hon. S.D .Mangobe 4. Hon. T. J. Sophonea 5. Hon. M. J. Maime 6. Hon. T. L.Kibane 7. Hon. M. P. Maqelepo 8. Hon. L. C. Hlomelang 9. Hon. L. K. Mokoma 10. Hon. M. Malefane 11. Hon. M. C. Hlao 12. Hon. T. Tsita – Mosena 13. Hon. M. R. Khati 14. Hon. M. Hlalele 15. Hon. P. D. Mafereka 16. Hon. T. P. Mokeretla 17. Hon. N. Motsamai 18. Hon. T. L. Mokhosi 19. Hon. M. Tlali