Massive Govt boost for football . . . Cabinet orders a reduction on PSL levies

Langton Nyakwenda

Zimpapers Sports Hub

THE chairperson of the Parliamentary Portfolio Committee on Sport, Recreation, Arts and Culture, Farai Jere, has lauded the Government for taking the yoke off Premier Soccer League clubs by approving a raft of changes to the levying system.

Government on Tuesday approved sweeping reductions in football-related levies, including halving the Sport and Recreation Commission and ZIFA match-day levies, while also reducing the Premier Soccer League levy from 10 percent to 4 percent as part of measures to improve the ease of doing business.

Parliamentarians believe the move by Cabinet could improve viability of local Premiership clubs, which were bearing the brunt of harsh levies.

The latest development will augment gate takings for clubs, improve their revenue, and ultimately have more to pay players and other service providers.

A number of legislators with huge football interests, including CAPS United owner Jere, Pedzai “Scott” Sakupwanya of Scottland, and Innocent Benza of Herentals, have been advocating for the reduction of club cost drivers.

“As the chairperson of the Portfolio Committee on Sports, Recreation, Arts and Culture, this is what we have been advocating for.

“Even during my time when I was the chairman of the Premier Soccer League, we had several meetings, we’ve actually been making noise, we’ve been crying for these levies to be reduced so that the ultimate beneficiary is the player.

“Because if you look at it, match day gate-takings, the bulk of it was actually going to third parties,” said Jere.

As part of efforts to construct legacy sporting facilities, the Government has also approved a 16,000-seat stadium and other legacy projects for the 2027 Independence celebrations to be hosted in Mwenezi District, Masvingo Province.

According to Government, the approved reductions include:

“Reduction of the Sport and Recreation Commission 6 percent gate takings.

“Reduction of the Zimbabwe Football Association (ZIFA) 6 percent of gross income of match-day revenue by 50 percent.

“Reduction of the Premier Soccer League Levy pegged at 10 percent of net income of match day revenues to 4 percent.

“Reduction of Local Authorities 15 percent venue hire levy to 10 percent of total gross attendance.”

Meanwhile, the reviews will be effective upon the finalisation of the requisite statutory instruments. “We still have a problem with the stadium owners, especially the municipality stadium owners, Rufaro and Barbourfields.

“They are taking 20 percent of the match-day gate-takings.

“Advertisement as well is another problem.

“It’s not benefiting the clubs; it’s benefiting the advertisers.

“So, the clubs were really playing for nothing,” said Jere, a former Premier Soccer League chairman.

“I’d like to thank the able and the noble Government of His Excellency, Dr. Emmerson Mnangagwa, for looking at every place, not leaving anyone and no place behind.

“For walking the talk on the ease of doing business.

“Yes, football is business, and this makes life very much easier for clubs,” added Jere.

For years, PSL clubs have endured these levies whilst operating in a difficult environment.

For example, if a team grosses $100, 000, almost half of it goes to the council, SRC, ZIFA, the PSL, and service providers, who include the Zimbabwe Republic Police.

“Whatever we have been fighting for is for the benefit of that player and those who live through what the player earns, that is their families.

“This development is pro-poor, it’s pro-players, it’s pro-those who have been suffering for a long time, yet their talent makes us all fill up the stadiums to watch them doing their work.

“They will now benefit more.”

However, Jere feels more needs to be done on the issue of taxes on those businessmen and corporates investing in football development.

A host of businessmen, including Scottland owner Sakupwanya, Shepherd Chahwanda (Hardrock), Simba “Buju” Ndoro of Simba Bhora, and Benza (Herentals), have invested millions of dollars into football.

A number of corporates, who include Sakunda Holdings, AfricaBet, Delta Beverages, Simbisa, Mimosa, Glenrise, Tongaat Hullets, Zimplats and GreenFuel, have also invested massively in football.

“Let’s take it a step further. We spoke about rebates of duties.

“We spoke about tax incentives to those who are putting money into football,” said Jere.

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