If the central government sticks to its decision to levy a tax surcharge of 21.84 per cent on the broadcast revenue of the ICC for next year’s ODI World Cup, then the BCCI may suffer a loss of about Rs 955 crore. Let us tell you that the 50-over World Cup is to be held in India in October-November next year.
There is no provision for such exemption in the tax rules of India. BCCI did not get such exemption even in hosting the T20 World Cup in 2016 and it suffered a loss of Rs 193 crore. The matter is currently pending in the ICC Tribunal.
The report, sent to the state units ahead of the AGM of the board to be held on October 18, said that the next major tournament of the ICC is the ICC World Cup 2023 to be held in India in October-November. The BCCI was to inform the ICC about the tax exemption by April 2022.
It further said that the ICC had extended the deadline to 31 May. The BCCI had told the ICC earlier this financial year that 10 per cent tax (other than surcharge) may have to be paid. The report said that if 21.84 per cent tax had to be paid, it would have an adverse impact on the board’s revenue from the ICC.
BCCI is talking
According to sources, the BCCI is in talks to bring down the tax surcharge to 10.92 per cent from the current 21.84 per cent. If this happens, then it will lose Rs 430 crore in revenue. According to PTI, the BCCI’s share in the ICC’s revenue pool between 2016 and 2023 is around Rs 3,336 crore. The ICC is expected to get Rs 4,400 crore in revenue from the telecast of this tournament to be held in India in 2,023.