FAM to negotiate tax waiver on sponsorship
Football Association of Malawi (FAM) executive committee has decided to approach government through Treasury to consider waiving tax on football sponsorship.
The decision was made during the FAM executive committee meeting held in Mzuzu at the weekend.
“It was agreed that companies sponsoring football should be given a tax incentive where the sponsorship amount should not be taxed.
“The committee believed that this would attract more companies to assist in sponsoring clubs as well as the national team,” reads part of the statement signed by FAM general secretary Suzgo Nyirenda.
The development comes in the wake of recent revelations that government subjects companies to taxes in relation to revenue it spends on sponsoring football, apart from denying them tax waiver.
The meeting also resolved that FAM should pursue the VAT (Value Added Tax) waiver on Goal Project IV with the Malawi Revenue Authority (MRA) so that the construction of a 34-bed hostel and cafeteria can begin.
FAM said a consultant for the project has already identified a contractor through a tender which was floated two months ago and it is expected that construction work will begin at the end of this month and will take eight to 12 months.
Fifa is funding the Project to the tune of $500 000 [about K207 500 000], but after the cost estimates there is a VAT amount of $16 000 which FAM is pursuing for a waiver.
