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According to reports, BCCI is expected to lose around INR 955 Crore (USD 116 million) if the central government sticks to its decision to levy a 21.84 per cent tax surcharge on ICC's broadcast revenue from the 2023 ODI World Cup. Tax surcharge refers to an additional charge, fee, or tax added to the cost of a good or service beyond the initially quoted price. A surcharge is often added to an existing tax and exempted from the stated price of the good or service.
Ahead of the BCCI's Annual General Meeting in Mumbai on October 18, the country's apex cricket body informed its state units that the adverse impact on the Board's revenue from the ICC if a 21.84 per cent tax is paid would be USD 116.47 million. Reports have further claimed that BCCI is still trying to negotiate and bring down the tax surcharge percentage to 10.92 per cent from the existing demand of 21.84.
According to the PTI report, the BCCI report sent to the state further claimed that BCCI is currently working with the Ministry of Finance, Government of India and have represented against this 20 per cent (excluding surcharges) tax order at the very highest level and informed about being confident of 10 per cent tax order.
"It is to be noted that any tax cost incurred by the ICC for the 2023 event in India will be adjusted with the BCCI's share of the revenue from the ICC," the report further stated. The BCCI's share from the ICC's central revenue pool for the tenure 2016 to 2023 is USD 405 million (Rs. 3336 crores approximately). The ICC is expecting USD 533.29 million (Rs 4400 crores approx.) from the broadcasting revenue of the 2023 event in India," added the report.
Earlier, BCCI was obliged to deliver a tax exemption or a tax solution to the ICC for this event, latest by April 2022, but the ICC Board further extended the timeline till May 31, 2022. "The BCCI had advised the ICC that in line with the tax order for the 2016 event, it was expected that a 10% (excluding surcharges) tax order could be obtained as an interim measure for the 2023 event within the required time frame," mentioned the report.
Notably, 50-over World Cup 2023 is scheduled to be held in India in October & November.