Kofi Adams, the Sports Minister, has clarified that the Sports levy being proposed by the government is seeking to allocate a percentage of existing levies to support sports development.
According to Kofi Adams, the Sports Fund is not entirely a new tax since it already exists on Ghana’s books.
Speaking on JoyNews’ PM Express on October 8, Mr Adams clarified, “We are not introducing a tax. But since those already exist, we are putting some levies on them and taking a percentage of them. That’s all that we are going to do.”
“The bill that we have sent to Cabinet for approval, that is to be sent to Parliament, does not have any such provision of a new tax,” he emphasised.
Kofi Adams added, “If Parliament, in their wisdom, decides that they want to impose a tax to generate this fund, that will be Parliament’s decision, not what we are proposing now.
Well, I don’t know what the Finance Minister is going to do as far as taxation issues are concerned. Surely, he will take it to Parliament. If Parliament approves, fine.”
The Sports minister added, initial revenue from the Sports Fund may not be large but it will grow over time.
Kofi Adams added, “I know initially it will not be much. But as it drives on and we begin to capture a lot of data, it will go into millions.
“When something is good and is done badly, it becomes difficult to immediately change it and say that, because you are having these good intentions, let’s just drift it that way. It doesn’t work that way.”
“It would have been if, when they did that, it was being used for sports and not collecting it and using it for many other things that were unnecessary,” he argued.
He further outlined the purpose of the Sports Fund: “The Sports Fund will support sports infrastructure. It will support the growth of especially key sports areas. Football is one of them, and athletics. I love athletics so much, sitting here, but we have not funded it enough.”
“We have not funded it enough. How many tracks do we have? Many schools are still running on undulating pitches where you have to look where to step because there are so many holes in the tracks. There’s no way you can produce Olympic green athletes if you have such pitches.”
“It’s not going to be free money that you just come and take without accounting for any improvement,” he said.
Mr Adams concluded, “If you are supported, you have to prove that you have done something meaningful with the previous support before you qualify for another.”
“Look, the Anthony Joshuas and the rest that came here—it was out of the British Sports Fund that they created, that has supported athletes and created big-time boxers and world champions for them,” he said. “We can also do that again.”
It will be recalled, Kofi Adams announced that the John Mahama government will introduce a new Sports Levy.
Kofi Adams revealed the Sports Levy will soon be presented to Parliament when it reconvenes.
He explained that the levy forms part of the government’s plan to sustainably finance sports development nationwide, serving as the main funding source for the proposed Sports Development Fund.
Speaking in an interview with Citi FM, Kofi Adams stated, “The government is introducing a sports fund that will make us have a well-structured funding for sports. We do not have that currently, and because of it, our support for sporting activities has been very limited,” the minister explained.
“Young people qualify, they struggle, they go through all the processes, and yet we are unable to push them to participate in competitions. So, the government has decided to establish a sports fund,” he added.
“You can’t establish a fund without a levy. Every fund must have a form of levy that contributes into it.”