200 to 900 crores tax could have to be paid for T20 World Cup in India, benefit from organizing in UAE | 200 to 900 crores tax could have to be paid for T20 World Cup in India, benefit from organizing in UAE

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  • 200 To 900 Crores Tax Could Have To Be Paid For T20 World Cup In India, Benefit From Organizing In UAE

New Delhi2 hours ago

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The Board of Control for Cricket in India (BCCI) has decided to shift the ICC T20 World Cup to be hosted by it in the UAE in October-November. The board has said that in view of the uncertainty of the corona epidemic, this was the best. However, if we go back a bit on the developments related to the organization of the World Cup, then it is known that the corona epidemic is not the only reason behind this decision. Avoiding the tax levied by the Government of India on the organization of the World Cup can also be a big objective of the board.

Was not able to talk to the government on tax waiver
Many officials of the Indian board have accepted this in a veiled voice, they are demanding the government to make the World Cup event tax free. However, the Government of India was in no mood to make concessions. It is believed that the board could have to pay tax up to 46% on the revenue received from the World Cup. This amount works out to around Rs 900 crore. Even if there was a lot of exemption from the government, at least Rs 200 crore would have to be paid as tax.

ICC had withheld Rs 176 crore for the last event
The 2016 T20 World Cup was also organized in India. Then the ICC had asked the BCCI to get tax exemption from the government. But, it got only partial success. Due to this, the ICC had withheld $ 23.7 million (about Rs 176 crore) of BCCI.

In this way the Indian board will be in profit
If the Indian board organized World Cup matches in India, then the state associations organizing the match would have paid a fee of about Rs 1 crore per match. He used to pay the same fee for IPL matches as well. In this sense, the board would have had to pay around Rs 45 crore as fees for 45 matches. The board had given about Rs 100 crore to the board there to conduct the entire IPL of 2020 in UAE.

It is believed that 80 to 90 crores can be given for the World Cup. In this sense, BCCI will have to spend double the amount as compared to India in the form of fees. But, even if Rs 200 crore is saved in the form of tax, even then BCCI will earn Rs 110 to 120 crore more.

There is not much difference on the earnings of broadcasters
Star India is the official broadcaster of the World Cup. He would have already set up his logistics for the IPL in the UAE. Soon after that, the World Cup is not expected to affect his earnings. Whether the matches are in UAE or in India, Star India will get a similar income from ad slots. Star India earned about Rs 1800 crore from the 2019 World Cup in England. This time also this amount is expected to be around the same.

Benefits to the board, losses to the country
BCCI may be saved by shifting the World Cup to UAE, but it is bound to hurt India. The ICC has officially said that England’s economy was helped by about Rs 3600 crore by organizing the 2019 ODI World Cup. This amount may have been less due to Corona, but it is certain that due to the absence of the World Cup, the Indian economy will miss out on getting a boost of about 2500 to 3000 crores.

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