The Ministry of Finance has informed the Board of Control for Cricket in India (BCCI) and other concerned bodies that the government has issued a new taxation policy on sporting events as per reports. The government will charge 21 per cent tax for the ICC World Cup 2023 which can lead BCCI to lose a massive amount of Rs 800 crore.
The Indian government charged 10 per cent tax during the T20 World Cup in 2016 and now the taxation rate has jumped to 21 per cent which could lead BCCI to lose a staggering amount of money or even the hosting rights for the world cup.
Earlier, the ICC had cleared its stance on the taxation policies by stating that the international board expects a tax-free nation to host the tournament. During the 2016 T20 world cup, the Indian government imposed 10 per cent tax and the ICC threatened to move the world cup to another country. Also, the ICC asserted that it will deduct the amount from BCCI's annual revenue if they had to pay the 10 per cent tax.
The 2023 world cup is likely to be valued at $500 million or Rs 4000 crore with the broadcast fee around Rs 500 crore. The 21 per cent taxation could lead to heavy losses for the BCCI, broadcasters and the ICC. However, ICC could move the hosting right to a tax-free country which could be a major setback for BCCI if they failed to pursue the government for a better deal.
The taxation policy will benefit the government at the cost of Rs 800 crore loss for the BCCI. ICC and the world cup broadcasters are also expected to be on the losing end if the BCCI failed to work out a feasible deal.