MUMBAI: The world’s richest cricket body has been handed a hefty tax demand from the Centre for the 2023 ICC Cricket World Cup, which India will be hosting.
A BCCI note, circulated among the state associations on Thursday ahead of the October 18 Annual General Meeting (AGM), accessed by Cricbuzz, states that the Union government has decided to increase the tax outlay on the World Cup to 21.8%. Pertinently, the tax outlay levied on the 2016 T20 Wolrd Cup, which India hosted, was at 10.29 %.
“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. 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,” the note points out.
The BCCI further states that the increased tax outlay means higher loss of income for the board as the cost will have to be borne by the BCCI. “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 note says, illustrating the point that “The Impact on BCCI’s revenue from the ICC, if a 21.84 % withholding tax order is received by ICC is $116.47 million.” The total cost of the 2023 World Cup is $533.29 million.
The previous tax order was for 10.29 %, levied on the 2016 T20 WC which India hosted and the liability, to the tune of USD 23.5 million, was adjusted in India’s share of the ICC revenue. The note confirms, “The ICC’s broadcast partner was allowed a lower withholding tax of 10.92% for the 2016 event by the relevant department in the government of India. This 10.92% amounted to nearly USD 23.5 million. This amount of USD 23.5 million was subsequently deducted from BCCI’s share of ICC revenues. This deduction is being legally contested by the BCCI since then.”
