Friday, 4th July 2008 - 17:40CET

Tax benefits for sports announced

Parents who send their children to sports activities approved by the Malta Sports Council will be able to deduct up to €100 from their taxable income, Finance Minister Tonio Fenech announced today.

He said that recognised sports organisations that do not operate on a commercial basis are to receive financial help on their capital outlays in sports facilities.

Private companies which financially support sports associations or athletes will also be able to deduct the money from their taxable income.

Speaking at a press conference with Clyde Puli, Parliamentary Secretary for Sports, Mr Fenech said the government was committed to encourage the people’s participation in sport and for sports facilities to be improved.

Earlier today the government also announced VAT-exemptions for students following summer educational programmes.

Comments

M Xuereb (on 5/7/08)

Deducting €100 (Lm42.93) from your taxable income is indeed a laugh when it translates into a Lm15 tax deduction if you reach the 35% tax band!? Although with the prevailing economic situation one grapples at every opportunity for financial relief, Mr Puli would do well to consider more palpable methods of encouraging parents to spend their limited resources on their children's sport. And the hassles the tax authorities give you to justify a tax deduction?! My God, I go through enough hassle when year in year out my children's private school deduction never appears on our tax assessment, despite having remitted all required docs with our return! Din jonqosni issa - and for a miserly Lm15!

Mario H Calleja (on 5/7/08)

I cannot but support David Schembri's comment. The Scout Association is acknowledged as being one of the important youth organisations in Malta. When such schemes are introduced the Scout Association is unfortunately left out. Unfortunately it is in a class of its own because it is not classified as a Sports Organisation. Nonetheless I believe it still falls under the same Sports Council. In fact it contributes financially to this Council.
Something that should be actively considered to further help Voluntary Organisations is the setting of special rates for Water and Electricity. The current practice of charging commercial rates is becoming somewhat of a burden on such organisations who have to work hard to obtain revenue to finance their day-to-day expenses.

James Sultana (on 4/7/08)

Mark ... its even worse than you think ..... the €100 is deducted FROM THE TAXABLE INCOME and NOT FROM THE TAX PAYABLE. So, if you usually earn €15000 and pay €2000 tax, with this measure, the €100 will not be deducted from the €2000 you have to pay to the tax department, but from the €15000 on which the tax is calculated.

So realistically, the maximum savings you will really make is the tax payable on €100 .... €30 a year !!!!!

Thomas Grima (on 4/7/08)

"Earlier today the government also announced VAT-exemptions for students following summer educational programmes"
There is no VAT on education. OR??????

Mark Spiteri (on 4/7/08)

Surely,this must be some sort of joke from Puli.
100 euros deducted from your TAX per year to cover the cost of s child doing Sports.
1.92 Euros a week !!!!Hilarious and Funny I should say.Whatever next
What can you cover with 0.27 euro cents per day????On what grounds was this calculated.
The situation gets funnier and funnier.Another CARRY ON MOVIE SHOULD BE DONE...and guess what the Title would be?????

David Schembri (on 4/7/08)

What about the Scout Association of Malta members as well as their scout groups or association? Are these to receive the same treatment and privileges?

J. Borg (on 4/7/08)

Hope this applies to juggling too....
cause with all the food costs, utilities bills and mortgages interest to juggle with, we really need serious training.

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Tax benefits for sports announced

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