BCCI could lose BIG if central govt sticks to decision of increasing tax outlay for 2023 ODI World Cup

The cricketing fraternity is eagerly waiting for the commencement of the forthcoming T20 World Cup, in Australia. The next year will see another ICC event in men’s cricket, with India set to host the 2023 ODI World Cup.

Ahead of the ODI WC, BCCI is in a spot of bother as it could lose big if the central government sticks to its decision to levy a heavy tax surcharge on ICC’s broadcast revenue for the showpiece event, to be held later in 2023. 

As per the ICC norm, every host nation is needed to obtain tax exemption from the government for hosting tournaments organised by the global body. However, India’s tax rules don’t allow for such exemptions; putting BCCI in a fix. For hosting the 2016 T20 World Cup, the board incurred a loss of a whopping USD 23.5 million (INR 193 crore). Thus, the BCCI is working hard to bring down the tax surcharge percentage to 10.92 per cent, as opposed to the currently demanded 21.84 per cent.

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“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 a tax solution to the ICC for this event, latest by April 2022,” carried out a report which was circulated among state units prior to the BCCI’s upcoming Annual General Meeting (AGM), on October 18 in Mumbai. 

“This time line was further extended by the ICC Board till 31st May 2022. At the start of this financial year, the BCCI had advised the ICC that in line with the tax order for the 2016 event, it was expected that a 10% (excluding surcharges) tax order could be obtained as an interim measure for the 2023 event within the required time frame.

“The ICC has now received a 20% (excluding surcharges) tax order for its broadcast revenue for the 2023 event from the tax authorities in India.”

If the BCCI manages to reduce the tax surcharge, to 10.92 percent, it will still bear a heavy loss; around INR 430 crore (USD 52.23 million).

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“The BCCI is currently working with the Ministry of Finance, Government of India and have represented against this 20% (excluding surcharges) tax order at the very highest level and are hopeful that a 10% (excluding surcharges) tax order would be forthcoming shortly.

“It is to be noted that any tax cost incurred by the ICC for the 2023 event in India will be adjusted with the BCCI’s share of revenue from the ICC,” the report further asserted.