BCCI will suffer a loss of Rs 955 crore, need exemption from the government for WC 2023

New Delhi. World cricket’s biggest tournament, the ODI World Cup, is to be organized in India in the month of October-November next year. The Central Board of Control for Cricket is busy in preparations for this World Cup. BCCI may have to face a loss of Rs 955 crore due to this tournament. However, only the Government of India can help the BCCI in saving it from this loss.

The country will benefit a lot from this event, while the BCCI may be in trouble due to this event. BCCI could suffer a loss of around Rs 955 crore if the central government sticks to its decision to levy 21.84 per cent tax surcharge on ICC’s broadcast revenue for next year’s ODI World Cup. The 50-over World Cup is to be held in India in October-November next year. Tax surcharge means the levy of additional fee or tax on any goods or services other than the original price.

It is usually added to the current tax and is not included in the quoted price of a good or service. As per ICC’s practice, the host country has to take tax exemption from the government to organize global tournaments. There is no provision for such exemption in the tax rules of India. BCCI did not get such exemption even in hosting the T20 World Cup in 2016 and it suffered a loss of Rs 193 crore.

The matter is currently pending in the ICC Tribunal. The report, sent to the state units ahead of the board’s AGM on October 18, said that the next major tournament of the ICC is the ICC World Cup 2023 to be held in India in October-November. The BCCI was to inform the ICC about the tax exemption by April 2022. It said that the ICC had extended the deadline to 31 May. The BCCI had told the ICC earlier this financial year that 10 per cent tax (in addition to surcharge) may have to be paid.

The report said that if 21.84 per cent tax had to be paid, it would have an adverse impact on the board’s revenue from the ICC. The BCCI is understood to be in talks to bring down the tax surcharge to 10.92 per cent from the existing 21.84 per cent. If this happens, then it will lose Rs 430 crore in revenue. The BCCI’s share in the ICC’s revenue pool between 2016 and 2023 is around Rs 3336 crore. The ICC is expected to earn Rs 4,400 crore in revenue from the telecast of this tournament to be held in India in 2023.