The latest development about FUFA notifying StarTimes Uganda Premier League and FUFA Big League clubs that soon paying NSSF and PAYE tax will be mandatory has started receiving mixed reactions.
Proline FC director Mujib Kasule is one of the few stakeholders that has voiced his opinion about the development stating that he would rather quit football (sell-off Proline) than pay taxes because it’s impractical.
“This is a good initiative,” Kasule revealed while appearing on Sports Arena, a sports show on Record FM.
“But not practical in Ugandan football, only a few clubs especially Institutional can afford to (pay the tax) but not all if not none.”
“Honestly for my case, I would rather quit investing in football than paying the taxes.”
The former KCCA FC player added that FUFA should instead enlighten the government about the plight of most clubs and also help the situation by financially helping the clubs instead of asking for what can’t be done but he insisted institutional clubs should take precedence in this.
“This will only cause more chaos especially for privately owned clubs, I think FUFA should provide a platform where clubs and government should meet to pave a way forward only then will we break even,” Kasule added.
“I am not against paying taxes and saving with NSSF, I think it is needed on a personal level. However, with the current economic situation and plight of local football clubs I don’t think it is really feasible.”
“What I am advocating for, is let the policy makers at URA come and do baseline research on the feasibility of the tax.”
“Because clubs are struggling to pay monthly wages consistently, with generally little to no incomes for the majority, levying more dues on them is pretty straining.”
Kasule added: “Football is profitable and can ably pay taxes because FUFA has previously paid returns after Cranes games, and stadiums like Nakivubo and Namboole have also paid returns.”
“But for the clubs, we need more investment to get to the level where we can convertibly file returns to the government.”
“I call upon government and URA to come down and meet the clubs, look at areas where they can invest like infrastructure, and from there, clubs can be at a level where we can pay the taxes,” he continued.
FUFA president Moses Magogo on Saturday revealed that government had written to them (FA) informing them that Uganda Premier League clubs will be subjected to paying NSSF and PAYE.
Monthly contribution to NSSF is 15% which is divided into two parts with an employee contributing 5% of their monthly remuneration while the employers (clubs) top-up 10% to the security fund.
The income tax rates vary depending on how much the employee earns with the highest percentage standing at 30%.
The minimum taxable amount for PAYE is 223,000. Employees who earn below 335,000 are subject to a rate of 10%, those who earn between 335,000 but less than 410,000 are subject to a 20% rate.
While employees who earn between 410,000 and 10M are subject to a 30% PAYE rate an additional 10% charge is levied on income exceeding 10M.