The WRU is using the Government change in VAT legislation to deliver a financial and operational boost to community rugby clubs across Wales.
New initiatives to help clubs improve their administrative operations are to be funded by the VAT savings on international ticket sales.
The projects will be approved by the WRU as part of a continuing focus on developing community rugby across Wales.
The move has been planned following the Government decision to cut VAT from 17.5 per cent to 15 per cent from December 2008.
The Welsh Rugby Union has decided to allocate the extra income from the reduced VAT payments to fund club improvements.
Ticket prices for the forthcoming RBS 6 Nations tournament games against England and Ireland at the Millennium Stadium will remain at the pre VAT reduction prices. The WRU will now draw up proposals for the money can be spent on community clubs.
The WRU Group Financial Director, Steve Phillips, said:”It is vitally important that the WRU, as the governing body, assists all our community clubs and help them operate efficiently off-the-field as well as on it.
“We are indebted to the volunteers involved in running Welsh rugby. They do a great job and we want to give them all the help we can to ensure they continue to enjoy success and sustainability.
“We will be contacting clubs in due course with our ideas of how they can improve and then they can decide whether to follow the advice we give them.
“We are currently in a tough economic climate outside our direct control so it is especially important to run efficient administrative systems and structures.
“The reduction of VAT offered us the perfect opportunity to isolate some funding which can be used directly to help community clubs.”
