Ghanaian giants Kotoko and Hearts seek government tax exemptions to boost revenue

Ghanaian football giants Asante Kotoko and Hearts of Oak have called on the Ghana Football Association (GFA) to push for the exemption of match proceeds from Value Added Tax (VAT) and other financial deductions.The two most successful clubs in Ghana argue that removing VAT from ticket sales would ease the financial burden on clubs, increase revenue, and allow teams to reinvest in infrastructure, player development, and general operations.The GFA should work towards the exemption of match proceeds from VAT and other similar deductions, the statement from Kotoko and Hearts of Oak read.Financial Burdens on ClubsMatchday revenue is one of the primary income sources for Ghanaian football clubs, yet many struggle to break even due to low attendance and rising operational costs.The two clubs believe that VAT deductions on ticket sales further cripple club finances, making it difficult for teams to sustain themselves.Football clubs are already struggling financially, and the imposition of VAT on gate proceeds takes away a significant portion of revenue that should go into player welfare, stadium maintenance, and development projects, the statement emphasized.Comparisons with Other Football NationsIn some African football markets, governments have provided direct funding of clubs while also exempting them from any taxes to boost domestic football.Kotoko and Hearts believe that Ghana should follow a similar path by lobbying for legislative changes that would provide tax relief for football clubs.They argue that tax-free match revenue would help Ghanaian clubs compete better on the continent, as teams would have more resources to invest in player wages, recruitment, and facilities.GFAs Potential RoleThe Ghana Football Association is expected to play a crucial role in negotiating with the government to secure tax exemptions.However, it remains unclear whether the GFA has engaged with state authorities on this matter.If the GFA successfully lobbies for VAT exemptions, it could set a precedent for other African nations looking to boost local football by supporting clubs financially.Awaiting Government ResponseThe Ghanaian government has yet to respond to the demands, but with Kotoko and Hearts leading the call, other clubs may soon join the push for tax relief.This latest move highlights the ongoing financial struggles in Ghanaian football and the need for structural reforms to ensure clubs remain sustainable in an increasingly competitive football landscape. Read Full Story