India is all set to host the ODI World Cup 2023 in October-November subsequent 12 months and the brand new tax price of 21 p.c has grow to be a priority amongst the stakeholders. The final time a world occasion came about in India was the 2016 T20 World Cup, when the tax levy was 10 p.c, with Star Sports activities holding again USD 22.5 million from the event payment of USD 225 million.
In 2016, the ICC had tried to recuperate that quantity from the BCCI, which was headed by the Committee of Directors. In the meantime, the printed charges of the ODI World Cup this 12 months is believed to have jumped to a mind-blowing USD 500 million, which can imply the taxation for it will likely be an astonishing USD 100 million.
“A letter from India’s Ministry of Finance appears to have gone not too long ago to all involved informing them that the tax levy on the 2023 World Cup can be 21 p.c, greater than double the cess collected from the final international occasion held in India, Twenty20 World Cup in 2016, resulting in a debate on who will take the load of the brand new withholding tax,” a report on Cricbuzz learn.
India’s finance ministry has despatched a letter to the involved authorities relating to the brand new taxation, because the BCCI is making an attempt to debate the taxation concern with the Authorities of India. “With Jay Shah on the helm of the BCCI, the matter is predicted to be resolved however the authorities resolution to impose 21 per cent withholding tax may have implications for the subsequent cycle of the ICC media rights,” the report added.
Notably, three international occasions are set to happen in India within the 2024 -2031 cycle and therefore, the monetary have an effect on by way of the taxes must be keep in mind. It’s reported that the BCCI is at present in talks with the Authorities of India to make sure that the revenue generated from the event isn’t so severely affected, which it’ll ought to the tax be levied on the present price.