Lesotho | Budget Speech for the 2026/27 Financial Year

Lesotho | Budget Speech for the 2026/27 Financial Year

Lesotho’s 2026/27 Budget Speech, delivered to Parliament on 18 February 2026, proposes adjustments to personal income tax thresholds and tax credits to protect lower- and middle-income earners from inflation-related bracket creep. The effective date is still to be confirmed.

What is changing
Personal income tax thresholds and tax credit adjustments

  • In paragraph 150, the Minister proposed that tax credits and thresholds will be adjusted in line with the 2026/27 salary and wage increase.
  • The measure is expected to impact employment income tax (PAYE) calculations once implemented.
  • The Minister further indicated that Income Tax Amendments will be introduced in the 2026/27 financial year.


Important notes

  • The adjustment has not yet been officially promulgated.
  • Further details will follow once updated thresholds and tax credit amounts are published.


Official source

 


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