2023 WC: BCCI to pay tax on behalf of ICC
What's the story
The BCCI is expected to pay a hefty amount of money from its share of the ICC central revenue pool for hosting the 2023 Men's ODI World Cup. As per a report in ESPNcricinfo, the BCCI could lose out on US$58-116 million because of the tax imposed by the Indian government on the global cricket body for hosting the global event in India.
BCCI
Here's what the BCCI has stated
"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 BCCI said on Thursday. As per the report, the BCCI outlined the estimated financial hit it is likely to sustain in the absence of the global cricket body securing a full tax exemption from the Indian government.
Tax waiver
BCCI obligated to help the ICC
The tax exemption was something the BCCI signed with the ICC in 2014. Back then, three tournaments were awarded to the BCCI - 2016 T20 World Cup, 2018 Champions Trophy, and the 2023 ODI World Cup. As per the agreement, the BCCI was "obligated" to help the ICC secure the tax waiver.
Information
What happened in 2016?
Back in 2016, the BCCI said the ICC deducted "nearly $23.5 million" from the central revenue pool after the Indian government had charged Star India, owning the rights for ICC events, 10.92% in taxes.
Exempton
BCCI in talks with finance ministry for tax exemption
The BCCI is having discussions with the finance ministry for a tax exemption in relation to the 2023 World Cup. The BCCI was originally meant to secure such an exemption 18 months before the 2023 World Cup, saying it had asked ICC to extend the deadline to May 31 this year from April.