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Corporation move taxing to KCA

The move to do away with tax exemption for entertainment activities is a blow to the Kerala Cricket Association which is busy with the ODI

Published: 17th October 2013 12:28 PM  |   Last Updated: 17th October 2013 12:28 PM   |  A+A-

The fiscal crisis in the Kochi Corporation will is likely to take its toll on the ODI match between India and West Indies due next month. The Corporation’s move against tax exemption for any entertainment activity in the city will come down heavily on the organisers of the international match.

The Corporation has made it clear that the the Kerala Cricket Association, the organisers of the International match, need not expect any tax exemption. “This is a decision made when we met specially on September 4 to discuss the Corporation’s severe financial crisis. In such a situation, it will be extremely difficult for us to offer tax exemption for any entertainment activity, including the international cricket match next month,” said Mayor Tony Chammany.

 He added that, however, if the KCA makes a request for tax exemption, he would refer it to the Corporation Council to take a final call. “This is a source of revenue for us, the financial constraints are so heavy that it’s hard for us to overlook the fact,” the Mayor said.

According to the KCA, they would have to pay almost 50 per cent of the ticket rate as entertainment tax to the civic body. The KCA said that they usually get an exemption from government bodies for such matches. “If there is no tax exemption and if we make a ticket sale of `1 crore, half of it will go to the civic body. This is one of the highest tax rates in the country. We do not mind paying tax, but the civic body should remember that it’s the common man who is paying the tax. Anyway, we won’t raise the ticket rates,” said KCA joint secretary Jayesh George.

A highly-placed source with the KCA pointed out that the Corporation was showing double standards. “The civic body gave 100 per cent tax exemption for the Santhosh Trophy and I League last year. But when it comes to football, the Corporation relents but not for cricket. This is unfortunate, all games should be treated equally,” said the official. KCA officials also said that the Corporation’s rigour in obeying the law book regarding tax collection will not vanish when it comes to collecting complementary passes which also comes under the tax net. “As per rules, we have to give only five per cent of the total tickets as complimentary passes. Of this, about 600 are collected by the Corporation. So they tax the complimentary passes and collect them free of cost from us,” said the official.



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