Drakensberg, Lesotho. Jandre van der Walt/ Unsplash
Drakensberg, Lesotho. Jandre van der Walt/ Unsplash
Drakensberg, Lesotho. Jandre van der Walt/ Unsplash
Drakensberg, Lesotho. Jandre van der Walt/ Unsplash

Lesotho debates huge land reclaim from South Africa


  • English
  • Arabic

MPs from the small nation of Lesotho debated a motion to reclaim huge areas of land from neighbouring South Africa on Wednesday.

The motion put forward by opposition MP Tsepo Lipholo of the Basotho Convenient Movement aims to have parliament declare South Africa's entire Free State province, which borders Lesotho, as well as areas of four more regions as part of the small mountain kingdom.

His party, of which he is the only elected MP, ran on the issue ahead of national elections last year and it is a popular topic among the opposition.

"History has a record of what was taken from our people and that people were killed in the process. It is time to correct that," he told parliament.

Basothos, people from southern Africa's Bantu ethnic group who now live in Lesotho, used to live in the area, before they were seized by white South Africans, known as Afrikaners in the 19th century.

In the unlikely event the motion was voted into law, Lesotho would see its territory grow from just 30,000 square km to approximately 240,000sq km.

The motion is based on a 1962 United Nations resolution that recognised the right to self-determination and independence for the people of Basutoland, as Lesotho was then called.

But a 1964 agreement reached in Cairo saw members of the Organisation of African Unity, now known as the African Union, agree to recognise existing borders.

Lesotho, with a population of about two million, is entirely surrounded by South Africa, population 60 million, and on which its economy largely depends. Therefore it is unlikely the motion will pass.

Agencies contributed to this report

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

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8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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Tax authority targets shisha levy evasion

The Federal Tax Authority will track shisha imports with electronic markers to protect customers and ensure levies have been paid.

Khalid Ali Al Bustani, director of the tax authority, on Sunday said the move is to "prevent tax evasion and support the authority’s tax collection efforts".

The scheme’s first phase, which came into effect on 1st January, 2019, covers all types of imported and domestically produced and distributed cigarettes. As of May 1, importing any type of cigarettes without the digital marks will be prohibited.

He said the latest phase will see imported and locally produced shisha tobacco tracked by the final quarter of this year.

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As with cigarettes, shisha was hit with a 100 per cent tax in October 2017, though manufacturers and cafes absorbed some of the costs to prevent prices doubling.

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