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BCCI Could Lose Rs 955 Crore If ICC Doesn’t Get Tax Exemption To Host 2023 World Cup | Cricket News

NEW DELHI: The BCCI could lose about Rs 955 crore (USD 116 million) if the central government sticks to its decision to impose a 21.84 percent tax surcharge on ICCbroadcast revenue of 2023 ODI World Cupaccording to a Council report.
India will host the 50-person showpiece in October-November next year.
Tax surcharge refers to “an additional charge, fee or tax added to the cost of a good or service above the price initially stated”. A surcharge is often added to an existing tax and is not included in the stated price of the good or service.
According to the ICC standard, the host country must receive tax exemption from the government for hosting tournaments organized by the global agency.
Since India’s tax rules do not allow such exemptions, the BCCI has already lost almost Rs 193 crore (USD 23.5 million) because the government has not exempted any tax allowance for hosting the 2016 ICC T20 World Cup. The BCCI is still fighting that case in the ICC tribunal.
“The next ICC major men’s event, the 2023 ICC Cricket World Cup, will be held in India in the month of October and November in 2023. The BCCI was required to provide a tax exemption or tax solution to the ICC for this event, no later than in April 2022,” said the report circulating among state units ahead of the Governing Council’s AGM on Oct. 18 in Mumbai.
“This timeline was further extended by the ICC Board to May 31, 2022. At the beginning of this fiscal year, the BCCI had informed the ICC that in line with the tax decision for the 2016 event, a 10% (excluding surcharges) was expected As a provisional measure for the event of 2023, an assessment notice could be obtained within the required period.
“The ICC has now received a 20% tax order (excluding fees) for its broadcasting revenue for the 2023 event from the Indian tax authorities.”
According to the BCCI document shared with state bodies, if 21.84 percent tax is paid, the negative impact on the revenue of the Council of the ICC would be USD 116.47 million.
It is clear that the BCCI is still trying to negotiate and lower the tax surcharge rate to 10.92 percent of the existing demand of 21.84.
If the BCCI can lower the tax surcharge to 10.92 percent, the revenue loss would be about Rs 430 crore (USD 52.23 million).
“The BCCI is currently working with the Ministry of Finance, Government of India and have represented at the very highest level against this 20% tax decision (excluding fees) and hope that a 10% tax decision (excluding fees) will be forthcoming soon.
“It should be noted that any tax charges incurred by the ICC for the 2023 event in India will be adjusted by the BCCI’s share of the ICC’s revenue,” the report said.
The BCCI’s share of the ICC’s central revenue pool for the period 2016 to 2023 is USD 405 million (about rupees 3336).
The ICC expects $533.29 million (about rupees 4400) from the event’s broadcasting revenue in 2023 in India.

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