Entertainment Tax to be levied on IPL matches taking place in UP

The Indian Premier league made its debut in the state of Uttar Pradesh last season when Gujarat Lions adopted the Green Park in Kanpur as their ‘home’ ground for two games. Following a great reception, Kanpur was chosen to host two more games this year but they might have hit a brick wall already.

The Uttar Pradesh government has issued a government order of levying entertainment tax on all IPL as well as international matches happening in India’s biggest state. The Yogi Adityanath government has also issued a notice to the BCCI for the same. 25% taxes will be levied on the match tickets on accounts of Entertainment Tax, which will raise significant funds.

UP joins Delhi and Maharashtra

“It is for the first time that the international cricket matches and IPL matches will be coming under the purview of the Entertainment Tax department. The Uttar Pradesh government has also issued a government order in this regard on May 3,” Kanpur district entertainment tax officer Praveen Gupta told PTI.

Gujarat Lions played their last two home games at Kanpur on May 10 and May 13 against Delhi Daredevils and defending champions Sunrisers Hyderabad respectively. The presence of local boys Suresh Raina and Praveen Kumar was a big attraction for the mass crowds which turned up to watch the game even if the Lions were already out of the race for the playoffs.

Gupta pointed out that IPL is a commercial venture hence it is chosen to be under the ambit of entertainment tax. “The entertainment tax will be 25 percent of the ticket amount and the revenue is significant. The IPL ticket price is of reasonably high value and it is a commercial venture. Hence it comes under the purview of entertainment tax,” he said.

States like Delhi and Maharashtra have been levying entertainment taxes for years and UP is not be left behind.

“A notice has been issued to BCCI almost a week ago, and a second one is in a process. The department will recover the tax from the BCCI in form of arrears.” Gupta said.

It will be interesting to see if the BCCI will host more IPL games in the state of UP the next season.