The Lesotho Revenue Authority (LRA) says the 2019/2020 financial year tax revenue operating environment, was met with unpleasant challenges due to the decelerated global economic activity, and that the impact was evident in many industries in Lesotho.

In a statement LRA said the economic meltdown was further exacerbated by the emergence of COVID-19, which is already resulting into devastating impact on production capacity, affecting economic confidence, and locking the movement of both people and goods.

Despite these challenges, LRA said it was able to remit M6.962 billion for the 2019/2020 fiscal year, ended on the 31st March 2020.

According to the statement, by gross amounts LRA has collected M7.864 billion representing M162 million, which is 2.1% growth from M7.702 billion, collected in 2018/2019 financial year.

The recorded net collection of M6.962 billion in 2019/2020 financial year were largely offset by an increase in refund pay-outs, amounting to M902 million from M718 million, paid to clients in 2018/2019 financial year, reflecting a growth of M184 million which is 26% growth.

Mining companies accounted for the largest share of refunds paid in 2019/2020 financial year, and this sector performed poorly in 2019/2020 financial year, due to the low demand from China amid US-China trade wars, and the overall fall in diamond prices.