The BCCI is set to lose $116m in revenue due to the tax imposed on ICC. They will be hosting the 50-over World Cup in October-November next year but didn’t get a tax exemption. The board will suffer a loss of $116m due to this. After 2011, the tournament is set to be played once again in India.
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 the revenue from the ICC.”
The BCCI has also said that the ICC had an agreement of tax exemption in the 2016 T20 World Cup, the 2018 Champions Trophy, and the 2023 World Cup. The Champions Trophy 2021, which was supposed to be held in India was hosted in Oman and UAE.
The Indian cricket board was also “obligated” to help ICC and its commercial partners to get the tax exemption. With the exemption, ICC faces a loss of $23.5 million from the central revenue pool.
The Indian government had charged broadcasters Star India then and now Disney Star 10.92% in taxes.
The BCCI has challenged ICC on its tribunal. BCCI has already begun discussions with the Indian finance ministry to either exempt or find a solution for the tax problem. The BCCI was supposed to be exempted by April this year, which was 18 months before the event. The Board decided to extend it till May.
10.92% tax order will be seeing their losses which will be reduced to $58.23 million. The revenue will be deducted from BCCI’s share of $405 million for this cycle. The board is, however, “hopeful” of a solution as it will be engaging at the “highest level” in the Indian government.
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