Rs 45 Crore Tax Waiver to ICC: Aam Aadmi Govt bats for Pawar & Co , Cabinet clears tax breaks for ICC-1/4/11

With Pawar batting, Cabinet clears tax breaks for ICC

The government on Thursday approved a request from the International Cricket Council seeking tax exemption for World Cup cricket matches in India, but the proposal encountered strong criticism in the Union Cabinet meeting with Sports Minister Ajay Maken and some others questioning the logic of granting tax benefits to a sporting event that commercially makes crores of rupees in revenue and never lacks in sponsoring companies.

Supported by senior colleagues like Kumari Selja and Ambika Soni, sources said the Sports Minister’s argument was funds that would have become available had the tax exemption not been given, could have been used to cross-subsidise other sporting events where sponsorship is hard to find. Buttressing his argument, he is said to have further pointed out that his ministry’s budget had been significantly reduced this time, which put pressure on funds available for sporting events other than cricket.


Sources said Maken also raised doubts over whether the projected surplus earning of $201 million (approximately Rs 900 crore) given by ICC was accurate.

In its proposal, the ICC said that 60 per cent of this income will be raised from matches in India. I&B Minister Ambika Soni told a press briefing after the Cabinet meeting that the financial implication because of the tax exemption would

be about Rs 45 crore, based on the estimates given by

the ICC.

Maken is said to have contended that the figure could be much higher, as the critical matches including the semi-final and final were being played in India. And because of India reaching the finals, public interest and viewership will be that much higher leading to windfall gains for sponsoring companies like ESPN that has got exclusive telecast rights. He pointed out that the exemption was sought on total income raised in India and not the match specific.

Sources said that Agriculture Minister Sharad Pawar, who is also the ICC chief and has been behind the proposal, almost lost his cool with the Sports Minister’s line of criticism. Heavy Industries minister Praful Patel too was said to have batted strongly to defend the ICC proposal at the meeting.

Interestingly, although the Finance Ministry has initially opposed the ICC proposal, raising doubts on whether the tax gains would benefit the intended entities and not companies that are sponsoring the World Cup matches, it did not raise any concern at Thursday’s meeting.

Sources said Soni also raised the issue of accreditation of mediapersons on behalf of the National Broadcasters Association for the final match in Mumbai, in the light of ESPN’s refusal to allow them access citing exclusivity rights.