ODI World Cup 2023: BCCI in talks with Government of India over 21 percent tax levy

India is all set to host the ODI World Cup 2023 in October-November next year and the new tax rate of 21 percent has become a concern amongst the stakeholders. The last time a global event took place in India was the 2016 T20 World Cup, when the tax levy was 10 percent, with Star Sports holding back USD 22.5 million from the tournament fee of USD 225 million.

In 2016, the ICC had tried to recover that amount from the BCCI, which was headed by the Committee of Administrators. Meanwhile, the broadcast fees of the ODI World Cup this year is believed to have jumped to a mind-blowing USD 500 million, which will mean the taxation for it will be an astonishing USD 100 million.

“A letter from India’s Ministry of Finance seems to have gone recently to all concerned informing them that the tax levy on the 2023 World Cup will be 21 percent, more than double the cess collected from the last global event held in India, Twenty20 World Cup in 2016, leading to a debate on who will take the load of the new withholding tax,” a report on Cricbuzz read.

India’s finance ministry has sent a letter to the concerned authorities regarding the new taxation, as the BCCI is trying to discuss the taxation issue with the Government of India. “With Jay Shah at the helm of the BCCI, the matter is expected to be resolved but the government decision to impose 21 per cent withholding tax could have implications for the next cycle of the ICC media rights,” the report added.

Notably, three global events are set to take place in India in the 2024 -2031 cycle and hence, the financial affect through the taxes needs to be taken into account. It is reported that the BCCI is currently in talks with the Government of India to ensure that the income generated from the tournament is not so severely affected, which it will should the tax be levied at the current rate.