‘Itna paisa kaha se aaya?’ – Fans in shock as Indian Cricket Board set to pay tax of 963 crores on Apex Cricket Council’s behalf

The Indian Cricket Board will pay a whopping tax of 963 crores to the Indian Government on behalf of the Apex Cricket Council for the 2023 ODI World Cup. The Apex Cricket Council usually releases World Cup schedules at least a year in advance, but this time it is waiting until the Indian Cricket Board receives the necessary government approvals.

This addresses one of the most important issues, obtaining a tax exemption for the tournament. The Indian Board is expected to inform the Apex Cricket Council shortly of the Indian government’s precise position on the tax exemption issue.

When India was awarded three men’s events in 2014: the 2016 20-20 World Cup, the 2018 Champions Trophy (later changed to 2021 20-20 World Cup, which was relocated to the UAE and Oman due to the COVID pandemic), and the 2023 ODI World Cup, the two superpowers signed a host agreement that included the tax exemption.

The Indian Board was “obligated” under the contract to assist the Apex Cricket Council (and all of its corporate partners) in obtaining tax exemptions. According to ESPNCricinfo, the Indian tax authorities informed the Apex Cricket Council last year that the broadcast proceeds from the 2023 World Cup will be subject to a 20% tax order (excluding surcharges).

In a memo sent to its members and state associations, the Indian Board stated that any taxes incurred by the Apex Cricket Council will be adjusted against the Indian Board’s profits from the Apex Cricket Council’s central revenue pool.

The Indian Board indicated in a memo that the Apex Cricket Council’s expected broadcasting revenue from the 2023 World Cup is USD 533.29 million. It claimed that a tax order of 10.92% would have a financial impact on it of around UDS 58.23 million (the Indian Board’s note stated the amount as USD 52.23 million, which appears to be a typo given the percentages listed).

If the tax component is set at 21.84%, as the Indian tax authorities prefer, the amount more than quadruples to more than USD 116.47 million 996.67 crores).

Here is how Twitter reacted to Indian Cricket Board’s news