`The Board of Control for Cricket in India (BCCI) could lose Rs 955 crore rupees (116 million USD) if the Indian government still stands on its decision to levy a 21.84 percent tax surcharge on ICC’s broadcast total revenue from the 2023 ODI World Cup, according to a Board report.
India will host next year’s one-day World Cup which is scheduled to be held between October-November month.
Tax surcharge refers to an additional charge/fee or tax that is added to the cost of a good or services beyond the initially quoted price.
A surcharge is often mentioned as an existing tax and is not included in the stated price of the good or service.
As per ICC norms, the host country is required to get a tax exemption from the government for hosting tournaments organized by the international body.
Since India’s taxation system that don’t allow such exemption, the Indian Cricket Board has already lost around 193 crore rupees (23.5 million USD) as the government didn’t agree to give exemption in surcharge regarding hosting the event in 2016. The BCCI is fighting that case in the ICC tribunal.
The next ICC major men’s event, which is the ICC Cricket World Cup 2023, is scheduled to be held in India in the month of October & November in 2023. The BCCI was obligated to deliver a tax exemption or tax solution to the ICC for this event, latest by April 2022, stated the report circulated among state associations ahead of the Board’s October 18 AGM in Mumbai.
According to the BCCI’s circulated document to state associations, the adverse impact on the Board’s revenue from the ICC, if a 21.84 percent tax is paid, would be around 955 crore INR (116.47 million USD).
According to that note, the BCCI currently trying to negotiate with the Ministry of Finance, Government of India to reduce the tax surcharge to 10.92 in that case the Board will also lose around 430 crore INR (52.23 million USD). Overall, the Board will definitely face some losses, if the government considers positively about board’s tax surcharge-reducing request then it would be something less.
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