Cricket News : BCCI set to lose $58-116m if Indian government denies ICC tax waiver in 2023 World Cup

In order to maintain its portion of the ICC's central revenue pool,the BCCI is "obligated"to get a tax exemption for the tournament from the ICC. The tariff levied by the Indian government on the international cricket federation in exchange for hosting the Men's ODI World Cup in India in 2023will cost the BCCI between US$58 and 116 million from its part of the ICC's central revenue pool.

The main event will take place in India in October or November of the following year. When three men's events-the 2016 T20 World Cup, the 2018 Champions Trophy (later changed to the 2021 T20 World Cup, which was moved to the UAE and Oman), and the 2023 ODI World Cup-were given to India in 2014,the BCCI and the ICC inked a host agreement that included the tax exemption.

The BCCI was "obligated" to assist the ICC (and all of its commercial partners involved in the tournament)in obtaining the tax remission in accordance with the terms of the agreement.

18 months before to the tournament, the BCCI was supposed to gain this exemption. It stated that it has requested an extension from the initial April deadline to May 31 this year.

"At the start of this financial year, the BCCI had advised the ICC that in line with the tax order for the 2016 event, it was expected that a 10% (excluding surcharges) tax order could be obtained as an interim measure for the 2023 event within the required timeframe,"

the BCCI said in its update.

"The ICC has now received a 20% (excluding surcharges) tax order for its broadcast revenue for the 2023 event from the tax authorities in India."

The BCCI stated that the ICC will get an estimated $533.29 million in broadcasting revenue from the World Cup in India in 2019.

The BCCI's portion of the ICC's central revenue pool, which over the course of the current rights cycle (2016-2023), amounts to about $405 million based on ICC's overall earnings for the period anticipated at $2.7 billion, will be reduced by this amount, whatever it ultimately is.

The BCCI stated that a tax order of 10.92% on that would have a "financial impact" on it of approximately $58.23 million (the BCCI's note stated the figure as $52.23 million, which appears to be an error given the percentages listed). If the tax component were to be 21.84%, as the Indian government desired, the "financial impact" would more than double to approximately $116.47 million.

As it is interacting with the Indian government at the "highest level," the BCCI stated that it is still "hopeful" of finding a solution.

"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."

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