Kiev. Ukraine. Ukraine Gate – January 14, 2021 – Sport
The sphere of sports is one of the most affected by the quarantine. From March to June 2020, all competitions, trainings were canceled, the work of sports schools and sections was stopped. The postponement of the 2020 Olympics, World and European Championships virtually paralyzed sports life last year.
Without open events, sports are deprived of financial support. De facto, the industry is on the brink of survival. Only from the end of July, spectators began to be admitted to outdoor competitions. At events in the halls, the stands are still empty. To support sports, the deputies recently registered a bill №4577 in the Verkhovna Rada.
No competition – no money
During the spring lockdown, there were no sporting events, therefore, there were no broadcasts, along with them – advertising, as well as ticket sales. At the same time, federations and sports clubs continued to spend money on rental of premises, utilities, pay for athletes and coaches. The first deputy chairman of the Verkhovna Rada Committee on Youth and Sports, Jean Beleniuk, says that due to the lack of financial support, sports clubs were forced to cut payments to athletes, operating costs, utility costs, and some were even threatened with closure.
“We talk a lot about popularizing sports among all segments of the population, using it in the context of raising the level of health of our citizens and improving immunity. This was especially actual during the pandemic. Among the tools for popularizing sports, we saw the possibility of reducing VAT. This tax has already been reduced for the cultural sector. If a country gives such support to culture, then why should sport be left without it? “Compares Jean Beleniuk.
VAT rate is proposed to be reduced to 7%
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“It’s no secret that our country has a very weak culture of attending sports events,” says Beleniuk’s colleague, chairman of the subcommittee on physical culture and mass sports of the Verkhovna Rada Committee on Youth and Sports, Georgy Mazurasha. “Unfortunately, it is often difficult and free to attract people to sports events, but for money it is even more difficult. Also, there are no large queues wishing to hold such competitions with the sale of tickets. We look with envy at the crowded halls and stadiums in more “sports” countries, and we dream that we would have the same.”
Bill No. 4577 “On Amendments to the Tax Code of Ukraine that Relate to State Support for the Sphere of Sports” proposes to reduce the tax rate on the sale of tickets for sports events of the all-Ukrainian and international level. If the standard rate for such transactions, as for all that are subject to tax, was 20%, then the bill proposes to reduce it to 7%.
When the tax is reduced, organizers of sporting events can afford to reduce ticket prices to attract spectators , but they will not lose profits, says Jean Beleniuk: “This will give people the opportunity to buy tickets to sporting events at more attractive prices, so we ourselves will introduce them to the popularization of both sports and a healthy lifestyle.”
What do the federation think?
The sale of tickets for events is one of the important elements of financing sports organizations. For some, tickets are a key part of their income. Therefore, many sports industries are still unable to recover.
The Ukrainian Hockey League, like many other leagues, suspended the national championship in March. At this time, they were in the quarterfinals of the playoffs. They were able to finish the championship only in September, but without spectators, which means – without tickets. During the season, clubs play about 25 home matches, including the playoffs. All of this is lost profit. The UHL still does not have the ability to admit spectators to matches, but the likelihood of a reduction in ticket sales tax is welcomed:
“I think that this is an important step for the future – when our clubs will again be able to receive fans,” says UHL General Director Sergei Varlamov. “When this will happen, it is not known. However, this is also a good start to real cooperation between the state and sports. Perhaps soon we see other steps and laws that will support sports. Because now we are really going through difficult times.”
Bill # 4577 is really only one of the steps towards supporting sports. The specialized committee is already preparing for the second reading the bill “On patronage in physical culture and sports”. While there is fierce controversy around him, he should ultimately make it easier for businesses to support the sport.
The deputies hope to consider the bill on VAT reduction in the near future. Jean Beleniuk claims: this idea does not cause a long discussion among people who understand sports, because he hopes that parliamentarians will support the bill # 4577. And at the same time, they will allow sports in Ukraine to begin a way out of the protracted crisis as soon as possible.