KUALA LUMPUR – National Sports and Fitness Venue Owners and Operators Association (NSFVOOA) is urging the federal government to come up with several tax incentives and rebates to help gyms and fitness centres get back on their feet.
Speaking to The Vibes, its president, Datuk V. Radhakrishnan, said many sports and fitness venue owners are currently unable to organise any relevant events or competitions to earn back sufficient revenue.
“I would like to suggest to the government to revise the tax structure, including customs duties.
“At the moment, the products that we import, especially for sports and outdoor activities, incur 20% and 10% customs duty. What’s more, we have to pay for these duties up front,” he said.
“It’s a burden for people who are running businesses, because they have to make the up front payment in cash. Duty is not only on goods but freight and insurance, too.”
Radhakrishnan stated that the industry had been suspended for close to a year and could not operate due to government restrictions.
As such, having an accommodative budget would greatly improve the current situation of industry owners and operators, who have been severely impacted by the closure.
“Even though we’re allowed to reopen our businesses at 50% capacity, it is barely enough to cover the outstanding costs (incurred from the start of the pandemic) and overhead expenses; at best, we can, perhaps, break even,” Radhakrishnan added.
He highlighted another issue – one that is forthcoming – once the bank moratorium comes to an end.
“Currently, the bulk of our expenses come from loans.
“Come January, if the government doesn’t manage the situation well, we’re going to have a more serious issue – where we’ll see more companies closing down, more people losing their jobs – and banks will be coming after them,” he added.
Meanwhile, Malaysian Fitness Coalition member Yen Kee Toh (pictured above) echoed the same sentiment as Radhakrishnan, saying that the federal government needs to see the big picture to understand how sports and fitness activities can help build a healthy nation by improving the overall well-being of its people.
“If you look at the sports and fitness industry ecosystem, we have upstream and downstream channels, with sports and fitness centres situated right between the two.
“The upstream, for example, would be our equipment and apparel suppliers, while the downstream consists of coaches, trainers and gym members.
“Whatever (amount) the government pumps into the industry, it has a multiplier effect, which benefits every single party I just mentioned,” Yen concluded. – The Vibes, October 29, 2021
