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Sports News of Saturday, 21 December 2019


Government to consider waiving off 17.5% VAT on clubs gate proceeds

Kurt Okraku with President Akufo-Addo Kurt Okraku with President Akufo-Addo

Ghanaian clubs will soon be heaving a sigh of relief as the government is taking into consideration measures to waive off the 17.5% VAT component on gate proceeds after games, Vice President Dr Mahmu Bawumia has hinted.

The Ghana Football Association, through their President, Kurt Okraku had appealed to government to scrap off the current 17.5% VAT rate on clubs gate proceeds.

The President of the association Kurt Okraku made the passionate appeal to Vice President of Ghana Dr Mahamudu Bawumia who was a special guest at the launch of the 2029/20 football season to aid in waiving off the 17.5% VAT on gate proceeds to give clubs some financial freedom.

Kurt argued that despite the clubs not making enough money from the gates, the 17.5% VAT on gate proceeds leaves many clubs with nothing from the gates on some occasions.

“Your Excellency, we round to look for our meager money. We stage our games and promote them and at the end of the games, there is a VAT component of 17.5%. Your Excellency, we need a promise that today with your support and strategic strategy, the government will waive off this 17.5% from our clubs,” Kurt appealed to the Vice President Dr Bawumia.

Responding to Kurt’s appeal, Dr Bawumia disclosed that he will take the matter up to the government and speak to the Minister of Finance for a consideration of the issue to be considered in the next budget.

“Kurt talked about the VAT on gate proceeds. I take it as my marching orders and will take it up to the Minister of Finance so that when the next budget is being read, it will be considered,” he said during his address.

Clubs, mainly in the Premier and Division One Leagues, have consistently cried over the 17.5% VAT levied on their gate proceeds and have called on the government to assist in that line.

But following the call of Kurt, it appears the long desire of seeing that tax component taken off will see the light of day.

If the move materializes, Ghanaian clubs will benefit massively as it ensures a significant chunk of their gate proceeds goes directly into their coffers.