High inflation which was troubling every Indian for years now has finally reached the doors of the Indian Cricket Board. In a new announcement from the Finance Ministry of the Indian government, taxation on sporting events has been increased from 10% to 21%. According to the revised taxation system, the Indian Cricket Board will have to cough up another Rs 800 Crore from the upcoming ODI World Cup in 2023.
A recent report suggests that all the concerned authorities from the Indian Cricket Board have already been made aware of this new tax system and it will be put into action from the ODI World Cup 2023, scheduled to be hosted in India.
The World Cup 2023 which is set to be valued at $500 million, will have to cut $100 million from the earnings. The governing body for International cricket expects a tax-free world cup in the countries hosting the event. Earlier it was on the hosting cricket board to negotiate a better deal with their government.
The T20I World Cup in 2016 was also threatened with a similar tax issue. The Governing body for international cricket went so far as threatening India with taking the World Cup out of the country. It was all however negotiated between the Indian cricket board and the Indian government in the end.
Indian Cricket Board put into a lose-lose situation.
The Indian Cricket Board has been put in a lose-lose situation as any of the two outcomes would pull money out of the cricket board. The board would either need to pay Rs 800 Crore as extra tax to the Indian government, meaning less pay for broadcasters, the Indian cricket board and the International cricket board.
The second outcome would be that the World Cup is taken out of India which again means a loss of revenue for the Indian cricket board. It would also be detrimental to the Governing body for International Cricket as a World Cup in any other country than India would not generate as much revenue as a World Cup in India would.