KUALA LUMPUR – Tax exemptions announced in Budget 2023 for contributions made to non-government organisations (NGOs) involved in grassroots sports development could attract more corporate organisations to sponsor.
However, Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz did not mention the percentage of the tax deduction during the budget’s tabling yesterday.
Speaking to The Vibes, Olympic Council of Malaysia (OCM) secretary-general Datuk Mohd Nazifuddin Mohd Najib lauded the government’s decision to accept OCM’s suggestion that was previously put forth to Putrajaya.
He opined that the government should consider at least a 10% to 15% deduction as he believed it could encourage more contributions towards grassroots development.
“I am very happy that they looked into the taxation for the donation towards the NGOs.
“Though we do not know the percentage breakdown, this was the main issue that we have tried to raise for quite some time, and I am glad they listened.
“I think if they could set between 10-15%, it would spur a lot or more people to come and help donate to sports, especially sports associations, going forward after Covid-19,” he said.
Meanwhile, Nazifuddin also noted that the RM145 million allocation towards building, upgrading, and maintaining sports facilities is also in line with Malaysia being the host of the 2027 SEA Games.
Such a move could also help national athletes use the facilities as a training ground.
“These facilities can be used for preparation for the upcoming SEA Games, also as we prepare to become the host of the 2027 edition.
“I hope that when we have the idea of the type of sports that we are going to host, we can plan and invest in the facilities now.
“So, when the time comes for us to host, then we do not have to spend so much already,” he added.
The allocation for e-sports at RM13 million was a couple of million short of the previous budget’s (Budget 2022) announcement of RM15 million.
Despite that, Nazifuddin commended the government for its continuous support towards the sector.
With e-sports being a growing industry, he hoped that it could also be incorporated as part of the competitive events in the 2027 SEA Games. – The Vibes, October 8, 2022
