We’re Not Introducing Any New Tax for Sports Fund – Kofi Adams Clarifies

Introduction

Ghana’s Sports Minister, Kofi Adams, has recently addressed widespread rumours that the government plans to impose a brand‑new tax to finance a proposed Sports Fund. Speaking on the PM Express programme of PleasureNews on 8 October 2025, the minister explained that the government’s approach is to re‑allocate a portion of existing levies rather than create an additional fiscal burden on citizens. This article analyses the minister’s statements, outlines the intended structure of the Sports Fund, and offers practical guidance for stakeholders who may wish to benefit from the upcoming financing scheme.

Analysis

What the Minister Actually Said

During the interview, Mr. Adams made three key points:

1. No new tax will be introduced. The government intends to tap into existing taxes and earmark a share of the revenue for sport.
2. The Sports Fund Bill is already in Cabinet. The draft legislation, which will soon be sent to Parliament, contains no provision for a fresh tax.
3. Future tax decisions rest with the Finance Ministry and Parliament. If lawmakers later decide a dedicated tax is necessary, that would be a separate political decision, not part of the current proposal.

Financial Mechanics

The concept of “re‑allocating a share of present levies” means that certain taxes already collected—such as customs duties, excise taxes, or value‑added tax (VAT) on specific goods—will have a predefined percentage diverted into the Sports Fund. This method mirrors practices in other sectors where earmarked funds are created without increasing the overall tax burden.

Projected Revenue and Growth

Minister Adams admitted that the fund’s initial income will be modest, but he expects it to grow as compliance improves and data collection becomes more robust. The trajectory is similar to other earmarked funds that start small and expand as administrative capacity matures.

Summary

In short, the Ghanaian government is not rolling out a new sports tax. Instead, it plans to allocate a slice of existing tax revenues to a dedicated Sports Fund that will support infrastructure, athlete development, and key sporting disciplines. The legislation is awaiting Cabinet approval and will be debated in Parliament without any new tax clauses. Future tax decisions, if any, will be the prerogative of the Finance Ministry and the legislature.

Key Points

Practical Advice

For Sports Associations

To position themselves for future funding, sports bodies should:

1. Maintain detailed financial records. Transparent accounting will be a prerequisite for any grant.
2. Document outcomes of previous support. Evidence of impact (e.g., increased participation, improved performance) strengthens applications.
3. Engage with professional fund managers. Building relationships with the entities that will manage the fund can provide insight into evaluation criteria.

For Schools and Universities

Educational institutions aiming to upgrade their sports facilities should:

• Conduct a needs assessment to identify specific infrastructure gaps (e.g., track surfaces, gym equipment).
• Prepare a phased development plan that aligns with realistic budget estimates.
• Showcase how improved facilities will contribute to national talent pipelines, especially in athletics and football.

For Private Sponsors

Corporate partners can complement the Sports Fund by:

• Co‑funding projects that match the government’s priority sports.
• Offering in‑kind contributions such as equipment, coaching expertise, or technology platforms.
• Leveraging public‑private partnership (PPP) models to accelerate infrastructure delivery.

Points of Caution

• Uncertainty about future tax policy. While no new tax is proposed now, parliamentary approval could introduce a dedicated levy later.
• Implementation lag. The fund’s effectiveness will depend on how quickly the re‑allocation mechanism is operationalised.
• Compliance risk. Accurate reporting from tax authorities is essential; any shortfall in earmarked revenue could limit fund size.
• Political interference. Although the minister pledged professional management, stakeholders should monitor for any undue political influence.

Comparison

Ghana vs. International Models

Many countries use earmarked sports taxes to finance elite sport and grassroots development. Below is a brief comparison:

Ghana’s approach aligns more closely with the Australian model—leveraging existing taxes—rather than creating a new, dedicated levy as seen in the UK.

Legal Implications

While the current proposal does not introduce new legislation imposing a tax, several legal considerations remain relevant:

1. Statutory Authority. The Sports Fund will be established by an Act of Parliament. The law must clearly define the earmarking mechanism, the percentage of each levy to be diverted, and the governance structure.
2. Constitutional Limits. Any re‑allocation of tax revenue must respect Ghana’s constitutional provisions on fiscal policy and the separation of powers between the Executive and Parliament.
3. Transparency Obligations. The Fund’s management board will be subject to the Right to Information Act, requiring public disclosure of allocations, expenditures, and performance metrics.
4. Compliance with Public Financial Management (PFM) Rules. Disbursements must follow the Public Procurement Act and the Public Financial Management Act, ensuring competitive bidding and accountability.

Stakeholders should monitor the final text of the Sports Fund Bill for any clauses that could affect tax liabilities or impose new reporting requirements.

Conclusion

Minister Kofi Adams has clarified that Ghana’s upcoming Sports Fund will be financed by repurposing a portion of existing tax revenues, not by introducing a brand‑new tax. The legislation is already in Cabinet and will soon be debated in Parliament, where any decision to create a dedicated sports levy would be a separate matter. While the initial funding pool may be modest, the fund is designed to grow as data collection improves and compliance with the earmarking mechanism strengthens.

For sports federations, educational institutions, and private sponsors, the key takeaway is to prepare robust project proposals, maintain transparent financial records, and stay informed about the legislative process. By doing so, they can position themselves to benefit from a fund that aims to uplift Ghana’s sporting infrastructure, nurture elite athletes, and ultimately enhance the nation’s performance on the global stage.

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