The background of this came after KRA under the guidance of Treasury, was asked to tighten the belts on revenues and given a fresh target of approx KShs. 1 trillion for the financial year 2012-13. This is with increasing financial commitments that the Government has undertaken in the last couple of months trying to contain wage bills of teachers, doctors, as well as civil servants.
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| Tax Burden |
Back to sport, the bone of contention was the fact that most of the athletes who participate in races and events abroad usually get taxed from the host countries. As such their claim was that there is the double taxation case. They also portend that race prizes should remain untouched as they bring these monies back to help not just their families but other dependants.
In all fairness though, it remains every citizen's duty to remit taxes on their incomes or earnings made, as and when they are declared. It is also necessary that tax authorities in any country try scoop as much revenue to the common'basket that is Treasury coffers.
But a major disconnect is realised when tax authorities are very aggressive to take from our pockets, the sports investment is worse than dismal to say the least. Look at any of the last 5 financial year's budgets and their figures for sport. Be it in the form of new infrastructure, research or even in existing structures.
The funds that KRA is busy chasing, at least a certain percentage should be reinvested in sport. This is usually a tricky one for Treasury and Government authorities and this should be seen to be done.
The other concern is that, the Government has over the last 3-5 years tried giving bonuses to athletes and sports people who win and perform outstandingly for the country. Thus should the hand that gives be the same one that takes?
Another concern is that the Government has been paying lip service to other incentives for sports in general. From double taxation policies with other countries to tax holidays to willing sports investors and again the yet-to-be passed Sports Bill ( which is becoming a nuisance for any new Minister methinks...)
Advanced economies have also the same dilemma with taxation and many a European countries have been known to come down on earnings by sports personalities. A recent case of Usain Bolt avoiding the UK in favour of Paris comes to mind. We also know of football players insisting on higher wages to cover for the tax deductions in some of the major leagues in Europe.
The beauty of the countries in Europe and America is that at least there is investment in sports both in infrastructure, human capacity and technology. A recent example is United Kingdom's sterling performance during the London Olympics. It was no fluke after the authorities and national olympic association took to heavily invest in their sports people. Of course some will say that they had home advantage but give it to them that they made a deliberate effort to invest in their several attempts. {Here's is some policy from the European Union
As Kenya enters the next 50 years of self governance, the Government needs to get serious with its engagement with sport. Even with its many flaws, the sports scene in the country still has a lot of ground to cover and cannot afford to be stifled by knee-jerk policies to try to sustain unreasonable wage bills in the long term.
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