SportBusiness.com

India's taxing problem

India’s hopes of staging international cricket events have received a blow after the sport’s governing body said it must change its tax laws if it wants to host the top tournaments.

The ICC said the tax drain on staging an event in India was prompting the organisation to look elsewhere, despite it being one of the biggest markets for the sport.
The government offers no tax exemption for cash raised from sports events staged in the country – a decision which has already cost India the right to host this summer’s ICC Champions Trophy.
Said ICC president Ehsan Mani: “We will definitely seek tax exemptions before we host an ICC event in India.
“The ICC cannot afford to shell out 40 to 50 percent tax for major tournaments like the World Cup or the Champions Trophy.
“We are not a profit-making body. Even the Caribbean governments have waived all taxes for the next World Cup in the West Indies in 2007.
“If the Indian government does not resolve its tax position, they might not get the next Champions Trophy in 2006. The ICC is not in a position to give away a big percentage of its income to any government agency."
Indian cricket’s BCCI is in talks with government officials in a bid to change the strict tax regulations.