“In this world, nothing can be certain except death and taxes.” Benjamin Franklin
Taxes is one of the most hated expenses that most individuals and companies always complain about and/or try to avoid.
Some avoid taxes in a legally accepted way, others are smart enough to transfer it to their customers while the rest illegally avoid paying taxes either intentionally or through ignorance.
The majority of football stakeholders in Uganda have been ignorant about their tax obligations until the Federation of Uganda Football Associations (FUFA) communicated that football clubs are supposed to start remitting Pay As You Earn (P.A.Y.E) for all their employees.
As usual, most tax announcements are met with complaints yet football stakeholders should have a positive attitude towards meeting all tax obligations, and here’s why.
By August 2020, the majority of sectors in Uganda had resumed operating post the COVID-19-induced lockdown but, football was still on hold.
Football in Uganda greatly contributes a lot to the economy but it’s not documented for the government to be aware of the facts.
For those of us that work in football, our livelihoods depend on it but unfortunately, we haven’t taken the necessary steps to show the government how football contributes to Uganda’s economy.
By now, we have learned that the government of Uganda prioritizes the sectors that contribute to the economy.
A very good example would be the transport sector of commuter taxis and Boda Bodas, they operate in an informal sector but are customers of the fuel companies that pay a lot of taxes.
It’s easy to see why the transport sector was allowed to resume earlier than football yet it also has the risk of crowding.
Football stakeholders in Uganda should accept that complying with tax regulations would enable the government to know what they contribute to the economy and how to support the growth of football.
The other reason is the ability for football to get tax holidays, however, this is only possible when the government is able to know the potential of football’s contribution to the economy.
Tax holidays in football would encourage economic activity and foster growth, stimulate foreign investment and increase tax revenue in the long run.
This is where football in Uganda finds itself in a tax dilemma. Is it tax holidays before taxes?
For football in Uganda to be on the safe side, it would have to be paying taxes first and then lobbying for tax holidays.
Thank you for reading!
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