PARLIAMENT OF KINGDOM OF LESOTHO
SENATE
LEGISLATION COMMITTEE
REPORT ON VALUE ADDED TAX (REGISTRATION THRESHOLD) (AMENDMENT) REGULATIONS, 2025
REPORT N0: 1 MARCH 2026
PART I
- INTRODUCTION
The Value Added Tax (Registration Threshold of Vendors) (Amendment) Regulations, 2025, were tabled on 11th September 2025. Pursuant to Standing Order 51 (3), the Regulations was then referred to the Legislation Committee for consideration.
The report presents a summary of the Committees deliberations and recommendations on the Bill.
1.1 TERMS OF REFERENCE
The terms of reference of the Legislation Committee are provided as follows in Standing Orders (90):
- There shall be established under this Standing Order a Legislation Committee which shall continue for the term of the Senate.
- The Legislation Committee shall, in accordance with these Standing Orders:-
- Consider bills, subordinate laws tabled in accordance with section 27A of the Interpretation Act No. 19 of 1977 as amended, or other matters which are referred to it by the President or by resolution of the Senate;
- Consider and investigate the constitutionality, legality, conflicting provisions and offensiveness of bills or subordinate laws or any provision thereof; and
- Perform other functions, tasks and duties as may be resolved by the Senate.
- The Legislation Committee may:-
- Call for papers, hear oral evidence, which may, by resolution of the committee, be recorded and transcribed;
- Consult and liaise with Government ministries and departments;
- Ensure the attendance of any person at a meeting of the committee in terms of the Parliamentary Powers and Privileges Act of 1994; and
- Establish sub-committees
- Upon conclusion of business laid down for their consideration, the legislation Committee must adopt a report and may make recommendations to the Senate which shall then take final decisions.
2.0 COMPOSITION OF THE LEGISLATION COMMITTEE
1. Hon. Senator S. Motsamai Chairperson
2. Hon. Senator K.L.K. Theko
3. Hon. Senator B.G. Api
4. Hon. Senator M. Kanetsi
5. Hon. Senator Dr. T. Lebese
6. Hon. Senator L.M. Seeiso
7. Hon. Senator M.M. Moshoeshoe
8. Hon. Senator T. D. Bereng
9. Hon. Senator P.L.P. Peete
10. Hon. Senator S.B. Seeiso
11. Hon. Senator L. Khoaele
12. Hon. Senator M.T Mohale
13. Hon. Senator J.A. Motśoene
14. Hon. Senator S.S. Nkuebe
3.0 SECRETARIAT
Ms. ‘Maliako Lehloenya Committee Clerk
Mr. Steven Mokoaqo Committee Clerk
Mr. Tsěliso Papiso (Adv.) Legal officer
4.0 OPERATIONS OF THE COMMITTEE
The Committee reviews the Bills referred from the National Assembly in line Standing Order 51 and Subordinate laws referred in accordance with Section 27B of the Interpretation (Amendment) Act 1994 No. 4 of 1993.
PART II
5.0 BRIEF BY MINISTRY OF FINANCE
On Wednesday, 12th September 2025 the Ministry together with Revenue Services Lesotho (RSL) appeared before the Committee to provide a brief on the Regulations.
The Ministry presented that The Law adjusts (increases) registration threshold for VAT vendors, these are persons who are authorised to charge and collect VAT on behalf of the Revenue Services Lesotho (RSL) or the Government of Lesotho (GoL). The threshold is used to demarcate medium and large enterprises from small ones in terms of discharging the responsibility to charge and collect VAT. The adjustment or increase is made due to inflation.
The Ministry further showed that the registration threshold in respect of the supply of goods and services shall be M2, 000,000.00.
Moreover, Regulation 3 repeals The Value Added Tax (Threshold for Registration of Vendors) (Amendment) Regulations, 2013.
PART III
6.0 OBSERVATION
The Committee noted with contentment the presentation made by the Ministry and applauded it with no reservations.
7.0 RECOMMENDATIONS
Value Added Tax (Registration for Registration of Vendors) (Amendment) Regulations, 2025 be allowed to come into operation.
8.0 CONCLUSION
Subject to Standing Order 52 (3), the Committee wishes to submit the Report for the adoption by the House.