BCCI could lose whopping Rs 955 crore in revenue as hosts of ODI World Cup 2023 due to THIS reason

With India scheduled to host the ICC ODI World Cup 2023 next year, the Board of Control for Cricket in India (BCCI) is expected to rake in a huge sum owing to the multi-nation spectacle, however, they could lose Rs 955 crore (USD 116 million) due to the tax laws in India. 

According to a board report, the apex cricket body may miss out on the aforementioned whopping amount should the Indian government decide to stick to its decision to levy 21.84 percent tax surcharge on ICC's broadcast revenue from the 2023 ODI World Cup. 

With the show-piece event scheduled to be held in October-November next year, according to the ICC norms, the host nation is required to get tax exemptions from the government levied on the global cricket body in exchange for hosting a tournament. 

READ| Team India could travel to Pakistan for Asia Cup 2023, check list of major ICC events next year

However, since there are no such exemptions in India, owing to the laws, the BCCI could set to lose a huge chunk of its revenue from ICC, which would be USD 116.47 million to be precise. 

For the unversed, the BCCI had lost approximately Rs 193 crore (USD 23.5 million) after the government didn't budge on their tax surchage for the rights to host ICC T20I World Cup 2016. A case regarding the same is still being fought by BCCI in ICC's tribunal. 

Tax surcharge refers to "an additional charge, fee, or tax that is added to the cost of a good or service beyond the initially quoted price". A surcharge is often added to an existing tax and is not included in the stated price of the good or service.

READ| Team India squad for T20 World Cup: Jasprit Bumrah's replacement to be announced soon, check updates

"The next ICC major men's event, which is the ICC Cricket World Cup 2023, is scheduled to be held in India in the month of October & November in 2023. The BCCI was obligated to deliver a tax exemption or a tax solution to the ICC for this event, latest by April 2022," stated the report circulated among state units ahead of the Board's October 18 AGM in Mumbai. 

It is understood that the BCCI is still trying to negotiate and bring down the tax surcharge percentage to 10.92 percent from the existing demand of 21.84.

If the BCCI can reduce the tax surcharge to 10.92 percent, then the revenue loss would be around Rs 430 crore (USD 52.23 million).

READ| 'That's not Roger Binny...': Sourav Ganguly's remark on reported successor as BCCI president, watch

"The BCCI is currently working with the Ministry of Finance, Government of India and have represented against this 20% (excluding surcharges) tax order at the very highest level and are hopeful that a 10% (excluding surcharges) tax order would be forthcoming shortly.

"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 report further stated.

The BCCI's share from the ICC's central revenue pool for the tenure 2016 to 2023 is USD 405 million (Rs 3336 crore approximately).

READ| IND vs PAK T20 World Cup: Rain likely to play spoilsport? Early weather reports have fans fearing the worst

The ICC is expecting USD 533.29 million (Rs 4400 crores approx) from the broadcasting revenue of the 2023 event in India.

With inputs from PTI