2023 World Cup: BCCI set to SUFFER up to $116m LOSS after government denies tax exemption

2023 World Cup: 2023 WC India – The Board of Control for Cricket in India (BCCI) stands to lose up $116m in revenue due to tax imposed on the ICC. The global cricketing body is all set to host the 50-over World Cup in October-November next year but has failed to get a tax exemption which will bleed into BCCI’s share from ICC’s central revenue pool. Follow 2023 World Cup live updates on Insidesport.IN

Also Read: BCCI Elections: Sourav Ganguly HITS back at N Srinivasan’s NON-PERFORMANCE accusation, says ‘Many good things happened in my tenure’

2023 World Cup: BCCI set to SUFFER up to $116m LOSS in revenue as Indian government denies tax exemption – Follow LIVE Updates

As per an ESPNCricinfo report, the BCCI has informed its state associations that it stands to lose between $58-116 million from its share of the ICC’s central revenue pool. The cut comes as a result of the tax imposed by the Indian government on the ICC for hosting the 2023 ODI World Cup in India. The global extravaganza marks the return of an ICC tournament in India after 2016 and will be played in October-November next year.

In an update to the state associations on Thursday, the BCCI said, “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 report states that the BCCI has indicated the estimated financial loss it is likely to suffer in the absence of the ICC securing a full tax exemption from the Indian government. The BCCI and ICC had an agreement with terms of tax exemption signed in 2014 for three events – 2016 T20 World Cup, 2018 Champions Trophy and the 2023 World Cup. The Champions Trophy was later changed to the 2021 T20 World Cup held in Oman and UAE.

2023 World Cup: BCCI set to SUFFER up to $116m LOSS in revenue as Indian government denies tax exemption – Follow LIVE Updates

As per the agreement, the Indian cricket board was “obligated” to help the ICC and its commercial partners secure the tax waiver. The exemption has always been an issue with the ICC deducting nearly $23.5 million” from the central revenue pool. In that instance, the Indian government had charged broadcasters Star India (now Disney Star) 10.92% in taxes

As things stand, the BCCI has challenged the ICC on that at the global body’s disputes tribunal. While a decision from the tribunal is awaited, BCCI has begun discussions with the Indian finance ministry to deliver an exemption or find a solution for the tax problem. The BCCI was originally meant to secure such an exemption by April this year, 18 months before the event. However, the board had sought an extension until May.

The Indian government seek the tax component to be 21.84%, which would see BCCI lose roughly $116.47m. A 10.92% tax order will see their losses reduced to $58.23 million. The revenue will be deducted from BCCI’s share of roughly $405 million for the current cycle. The BCCI said it remained “hopeful” of a solution as it is engaging at the “highest level” in the Indian government.