25 per cent entertainment tax on IPL, DTH in Tamil Nadu

Watching the Indian Premier League (IPL) cricket matches and Direct-To-Home (DTH) television programmes have become costly affairs in Tamil Nadu. The All India Anna Dravida Munnetra Kazhagam (AIADMK) government led by Jayalalithaa on Wednesday slapped a 25 per cent entertainment tax on IPL matches and DTH services in the state.

A cash-starved Tamil Nadu government was looking for avenues to mop up resources to fund its populist measures like free laptops, fans, mixies and grinders. The 2011-2012 budget presented during the first session of the newly elected government did not disturb the common man with taxes. Hence the government was focusing more on sources like sales tax and the Saavdhan scheme.

The IPL matches played in Chennai are all sold-out events. The previous DMK regime never touched the IPL matches or the DTH services because of the close proximity the party patriarch Muthuvel Karunanidhi had with N Srinivasan, the IPL boss and the Maran brothers who owned the Sun DTH.

"Entertainment tax has been levied on DTH service and on cricket tournaments conducted by IPL by some of the states. So we in Tamil Nadu decided to include DTH service and cricket tournaments conducted by IPL within the definition of the term “entertainment” and to levy tax under the Act,” said Commercial Taxes Minister SS Krishnamurthy, who moved the Bill which was adopted by a voice-vote.

Srinivasan is the owner of India Cements as well as the Chennai Super Kings, a prominent IPL team. Dayanidhi and Kalanidhi Maran are the grand nephews of Karunanidhi.