Malawi Revenue Authority (MRA) has said that there is a need for local football clubs to go commercial so that they should be paying tax to the government.
MRA deputy director of corporate affairs Steve Kapoloma said the current status of local clubs is what is hindering the body from collecting tax from them.
Kapoloma said that once football teams change their status from social to commercial entities then MRA will have a mandate to order these clubs to do what the Companies and Taxation Acts say.
“What is important in Malawi going forward is to make sure that the clubs are recognized as commercial entities and thereby they will be obligated to follow all what is required under Companies Act and Taxation Act.
“To begin with, the law says that if you are an employer you are required under the law to come to MRA and register,” he said.
Meanwhile the country’s taxation body has told the clubs to take it as a responsibility in paying tax as stated by the law since it is not the responsibility of the body to be hunting them.
Recently there have been wrangles within local clubs fighting to go commercial.
For example Nyasa Manufacturing Company briefly suspended its sponsorship to Big Bullets following divisions within the camp as supporters were against commercialization of the club.