In what has come as a major victory for BCCI at ICC, the International Cricket Council has agreed to pay the tax money that BCCI has to spend from its own coffer for every global event it hosts in India.
Generally, in the case of all the host countries, whenever they organize a global cricketing event on their home turf, they don’t have to pay the taxes to their governments as all of them get the exemption, but that hasn’t quite happened in the case of BCCI because of the law of the land.
Since the central revenue out of all the global events goes to the ICC, it’s only unfair that BCCI has to take the burden of the taxes on an ICC event.
BCCI found a lot of support in the ICC meeting on the issue of tax money
BCCI raised the issue in the recent ICC meeting and got a fair bit of support on the matter from the other member countries, which eventually led ICC to come to the decision that they will themselves pay the tax money for the 3 ICC events that India will be hosting in the 2023-31 cycle.
Since India is the biggest cricketing market on the globe at the moment, ICC generates the maximum revenue whenever a global event takes place in India and then the central revenue gets distributed among the members.
Earlier, the tax money on the global events in India used to be deducted from BCCI’s share of central revenue from ICC events, which meant BCCI basically had to pay the tax money.
But, with ICC’s decision of taking the tax burden on themselves now, BCCI is supposed to save about 1500 crore INR from 2023 to 2031. However, they will still have to pay the tax money on T20 World Cup 2016 and ODI World Cup 2023 from their own coffer, which means they will suffer a loss of 750 crore INR.