ALCOHOL AND TOBACCO LEVY ACT

Lesotho Chamber of Commerce and Industry Encourages the Government to Reconsider Alcohol and Tobacco Levy Act

The Lesotho Chamber of Commerce and Industry (LCCI) has expressed concern about the limited stakeholder and industry consultation regarding the levy increases contained in the Tobacco and Alcohol Levy Act 2023, which came into operation on 1st March 2023. The LCCI is additionally concerned that the date of the implementation was not timeously communicated to industry and that the decision will encourage elicit trade in the country.

As a representative of Organized Businesses in Lesotho, the LCCI have always been supportive of and works tirelessly alongside the Lesotho government to grow the economy and promote the internal and external investment in the country.

We believe that the Alcohol and Tobacco Levy imposes an added reporting burden on legal traders, who will see profits decline as a cost of products increases. Experience in other territories show that the erratic policy decisions stimulate the growth of smuggling and elicit trade.

We strongly encourage the Lesotho Government to reconsider the terms of the Act, and to offer Private Sector real incentives that promote investment, create jobs, and grow the economy.

We believe that this would be more aligned to the Minister of Finance, Honorable Dr. Rets’elisitsoe Matlanyane’s recent Budget Speech who highlighted the role of the Private Sector to work with the Lesotho Government to achieve societal goals.

The goals of the business and government are intertwined, and it is only through effective dialogue and policy certainty that mutually beneficial outcomes can be achieved.

LCCI shall always support, protect and advocate for the interests of its members operating legal business in a Lesotho.

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On behalf of LCCI

(Mr.) Fako Hakane- Secretary General