Thursday, June 13, 2024

Pittance tax rebates fail to attract sports investors

The private sector engagement in sport is hindered by cumbersome tax laws that provide minimal incentives for engaging in sport.

The sentiments were shared by Minister of Youth Empowerment, Sport and Culture Development (MYSC), Tumiso Rakgare, when answering a question from Member of Parliament for Palapye Onneetse Ramogapi.

Ramogapi asked the minister whether there are any incentives in the form of tax reduction to companies that assist in sponsoring sports.

‘The law provides tax incentives for corporate entities that are willing to sponsor sports programmes. Section 51 of the Income Tax Act, Cap 52:01, provides for tax incentives to be extended to companies that donate to sport. Furthermore, tax waivers may be granted for in-kind donations from outside the country in terms of Section 84 of Customs and Excise Duty Act, Cap 50:01,” the minister said.

Rakgare told parliament that his Ministry believes that more can still be done to improve the benefit extended to companies that support sport.

“In this regard, the Botswana National Sport Commission has been tasked to consult sponsors with a view to propose improvements to the provisions that are in place,” explained Rakgare.

In the last five years, the three local mobile telecommunication companies have spent: Mascom P25,748,916.00, Orange Botswana P8,400,000.00 and Botswana Telecommunications Corporation (BTC) expended P57,000,000.00 respectively in sponsoring football.

He encouraged companies to invest in young people to not only enhance their brands but also to develop active and healthy citizens. He is of the view that government and private sector together can develop the sport industry and create jobs.


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