CHENNAI: Before the fate of the T20 World Cup scheduled in Australia later this year is decided, the BCCI has started thinking about the next edition of the event due in India in October-November in 2021. Some tax issues have to be sorted out so that the board doesn’t end up losing money, like it did after hosting the T20 World Cup in 2016.
Because tax authorities in India did not grant exemption to the event in 2016, the International Cricket Council (ICC) deducted around Rs 150 crore from the BCCI’s share of the world body’s revenues. India is also scheduled to stage the 50-over World Cup in 2023. The BCCI will approach the government with an appeal to grant a tax waiver so that it doesn’t lose out on money after hosting these two World Cups.
“It was decided at a recent online meeting of the BCCI’s Apex Council that the government would be requested for tax exemption. The request will be formally made after the lockdown. The BCCI thinks this is the best way to ensure that these two World Cups are held in India and it doesn’t lose out on revenue from the ICC,” said an official tracking developments.
The ICC sells media rights for its events including the men’s and women’s T20 and 50-over World Cups and the U-19 World Cup for eight-year cycles. This is the world body’s biggest source of income. This is why it seeks tax exemption from countries hosting these events. Sources in the ICC claim India is the only country not offering a waiver. For the 2016 event, the ICC didn’t directly pay taxes to Indian authorities. The amount was deducted from what broadcasters Star Sports paid to the world body. The ICC, in turn, deducted that amount from the BCCI’s share. Given that the 2021 T20 World Cup falls in the same eight-year cycle as the 2016 event, the BCCI stands to lose a similar amount if the government doesn’t offer a waiver.
When the BCCI was run by the Committee of Administrators, it had hired a legal consultant in UK to address the tax issue. That seems to have yielded no result, prompting the board headed by elected office-bearers to approach the government.
T20 WC to be deferred?
The ICC Board consisting of heads of the member boards will hold a tele-conference on May 28. The T20 World Cup in Australia in October-November will be discussed. According to PTI, shifting the event to next year is a possibility. Having the tournament as per schedule behind closed doors is another option. Also on the agenda is the matter of applying saliva and sweat on the ball. The ICC’s Cricket Committee is expected to table suggestions on this. President Sourav Ganguly will represent BCCI in the meeting.