Kitara Football Club president Deo Kasozi has called on the Uganda Revenue Authority (URA) to reconsider imposing taxes on gate collections from sports events, citing concerns that it could stifle the growth of the football industry.
This comes after Kitara registered a record-breaking gate collection of UGX 55.1 million during their first home match of the 2024/2025 StarTimes Uganda Premier League season at Royals Park Stadium, Butema in Hoima City.
Despite losing 2-1 to NEC in the game, Kitara surpassed their previous best collection of UGX 44 million, which they achieved during a match against BUL at Masindi Stadium earlier this year.
Following the club’s public declaration of the collection figures, Kasozi disclosed that URA reached out to him.
“URA called me when we made the declaration to the public,” Kasozi shared during an interview with CK Sports.
Kasozi expressed concern that taxing such collections, especially given their unprecedented nature, would hamper the club’s ability to grow.
“The amount of money that we collected (UGX 55 million) is the first of its kind in the history of the club. If URA comes in to tax, it will affect this source of income for the club,” Kasozi warned.
He further emphasized that football clubs in Uganda do not generate sufficient revenue to sustain their operations and that gate collections should be exempt from taxes.
“In my opinion, this money should be tax-free because clubs don’t make enough money to run them,” Kasozi stated.
However, he also affirmed that Kitara would comply with any legal tax obligations if necessary.
“I want to assure everybody that as Kitara, we’re not scared of URA wanting to tax this money. If the money is eligible to be taxed, then it should be taxed,” Kasozi noted.
Kasozi went on to suggest that the club might petition President Museveni to waive the taxes, likening the construction of their new stadium, Royals Park Stadium, to the contributions made by foreign investors, who often enjoy tax incentives.
“What the club has done, for example putting up a stadium, is equivalent to what foreign investors do when they set up their businesses, and they are not taxed,” he argued.
He also welcomed the growing debate around the taxation of sports clubs, prompted by Kitara’s transparency in publishing gate collections.
“It is good that because of our announcements, debates have come up about not taxing clubs, and I think URA should take keen interest in it,” Kasozi added.
Kasozi concluded by urging lawmakers to consider passing legislation that would protect local sports clubs from such taxes.
“If possible, Parliament should make laws against the taxation of gate collections, because that is the money clubs use to grow,” he said.
Kitara president’s call for tax exemptions comes at a time when many football clubs in Uganda are struggling financially, and seek more sustainable financial models to thrive in an increasingly competitive environment.
