/ 25 February 1999

TAX BREAK FOR GERMAN WORLD CUP BID

GERMANY’S bid to host the soccer World Cup in 2006 received a boost on Tuesday in Bonn when the finance ministry declared it would not tax revenue from tournament. Finance Minister Oskar Lafontaine said the decision to surrender potential tax income was “very, very painful. But we wanted to give our footballing friends an equal chance”. Aside from Germany and England, South Africa, Brazil, Egypt, Morocco, Nigeria and Ghana are bidding for the event, with the final decision due to be made by soccer’s ruling body Fifa next March. Under German law, organisers of any cultural or sporting events on German soil have to pay a flat tax rate of 25% on revenues. On television rights alone, this would mean Fifa would have to pay nearly DM500-million in tax.