Reports: BCCI might end up paying tax of INR 960 crore on behalf of ICC for 2023 World Cup

BCCI stated that the increased tax outlay would mean a higher loss of income for the board as the amount will be adjusted from their share of the revenue from the ICC.

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Cricket World Cup trophy

Cricket World Cup trophy. (Photo Source: Twitter)

While India's participation in next year's Asia Cup hosted by Pakistan became a hot topic in the media, BCCI also voiced against the 20% tax outlay on ICC for its broadcast revenue for next year's World Cup in the country. The apex cricket body hopes for a much lower revised taxation value (around 10%) from the Indian authorities.

BCCI has been working in tandem with the Ministry of Finance, Government of India, with hopes of reducing the tax order. It is worth noting that the tax outlay levied on the ICC will be forwarded to the BCCI, with the latter adjusting the sum from their share of the revenue from the ICC.

"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 the revenue from the ICC. The Impact on BCCI's revenue from the ICC, if a 21.84 % withholding tax order is received by ICC is USD 116.47 million (960 crore)," an AGM note has confirmed to Cricbuzz.

The board is currently challenging the decision of the Indian government sighting the example of the 2016 T20 World Cup, which was held in India. ICC was charged a much lower withholding taxation value of 10.92%, amounting to USD 23.5 million. The amount was adjusted from BCCI's share of the revenue from the ICC. The AGM note indicated that the board is hopeful of a revised tax outlay, similar to the lines from the 2016 WC.

"The ICC's broadcast partner was allowed a lower withholding tax of 10.92% for the 2016 event by the relevant department in the Government of India. This 10.92% amounted to nearly USD 23.5 million. This amount of USD 23.5 million was subsequently deducted from BCCI's share of ICC revenues. This deduction is being legally contested by the BCCI since then," the note added.

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