Lesotho Behavioral Insights Applied to Tax Compliance

Apex Consulting has been engaged by the African Development Bank to work directly with Lesotho Tax Revenue on improving simplification, attractiveness, timeliness, and sense of social responsibility for citizens to comply with tax laws. Apex will understand the new strategic shift that the Authority plans to achieve; Understand the LRA’s strategy including the kernel of the strategy (diagnosis, guiding policy and coherent actions); Understand the Tax Modernization project in relation to its various elements and how each fits in within the strategy. Apex will also undertake a review and identification of how behavioral insights can be leveraged to achieve the LRA’s strategy and, in particular, the Tax Modernization project and all its element; Apex will develop and recommend a behavioral insights framework to provide leverage towards the achievement of the strategy as well as understand the LRA execution framework as encapsulated by the 4DX system (The 4 disciplines of Execution) and integrate the behavioral insights into the execution framework. Additionally, Apex Consulting will provide training and guidance to the leadership of the Authority on behavioral insights framework and the practical application of these elements to enhance the achievement of the strategy. This is intended to ensure that Management will be able to independently operationalize the behavioral insights framework. The expected result is the compliance of Lesotho citizens to pay taxes.