21% Tax Levied On ICC World Cup 2023; Stakeholders Left Worried As To Who Will Bear The Load
Published - 19 Jul 2022, 05:02 PM | Updated - 23 Aug 2024, 12:10 AM
All the stakeholders in the upcoming ICC World Cup 2023 which will be played in India next year were left worried as reportedly a 21% tax has been levied on the glittering ICC event by the Indian finance ministry and now it remains to be seen who bears the brunt of extra financial burden.
With the World Cup in India just about 15 months away, the issue of taxation has come to the fore, and mitigating the revenue loss from the pinnacle event has fallen in the hands of the Board of Control for Cricket in India (BCCI).
The last ICC event hosted by India was in 2016 when the ICC T20 World Cup was played in the Asian giant. Then the tax levied on the event was 10% and if one can recall, Star Sports had held back $ 22.5 million from the tournament fee of $ 225 million and following the law of the land, the broadcaster had paid it to the Government of India towards TDS.
The BCCI then was headed by a Committee of Administrators (CoA) and it was a well-known fact that the International Cricket Council (ICC) under Shashank Manohar had tried to recover that amount from the share of the BCCI.
Tax Levied On 2023 World Cup Doubled From Last Event By Indian Finance Ministry; BCCI, ICC Worried
However, this time the new rate of taxation has been levied on the upcoming ICC ODI World Cup 2023 will be 21 per cent, more than double of the cess collected from the last event which was the 2016 T20 World Cup. This has led to a debate on who will be bearing the extra cost of this taxation.
The World Cup will be held in India in October-November, 2023.
The amount of new rate of taxation and the amount, this time, could be staggeringly more than $ 100 million as the broadcast fee of the 50-over World Cup is believed to be more than $ 500 million.
While Cricbuzz reported that none of the parties involved- ICC, BCCI and Star Sports are willing to say anything on record; reports have suggested that the BCCI is trying to negotiate with the Government of India over the matter so that the income from the tournament, to be dispersed among the members of the ICC, is not harshly affected.
Discussions have been going on this even for the next cycle of 2024-31, when India will be hosting three global championships. There are people who think that BCCI being the host board should bear the entire amount, but the BCCI stand has been that it will do its best, but not guarantee it.
The matter is expected to be resolved but the government’s decision to impose 21 per cent withholding tax could have implications for the next cycle of the ICC media rights that are on sale currently.
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