State to levy tax on IPL from next season
Two days after the Bombay High Court made remarks on the state government’s reluctance to levy entertainment tax on Indian Premier League matches, the state cabinet on Thursday decided to tax on the popular tournament in the next season.mumbai Updated: May 07, 2010 01:52 IST
You may have to pay more to enjoy an Indian Premier League match in a stadium next season onwards.
Two days after the Bombay High Court made remarks on the state government’s reluctance to levy entertainment tax on Indian Premier League (IPL) matches, the state cabinet on Thursday decided to tax on the popular tournament in the next season.
This means, spectators will probably end up shelling out more money for tickets to these matches because organisers usually pass on the burden of taxes to consumers.
The cabinet on Thursday finally decided to levy entertainment tax between 15 and 25 per cent, on the tournament in 2011.
“We have taken a decision to charge tax from the next season wherever it happens in the state,” said Deputy Chief Minister Chhagan Bhujbal.
Since the tax will be levied on the total revenue generated from ticket sales in its cabinet meeting in January, the burden will be passed on to spectators who purchase tickets.
This is the second time the government is taking a decision to charge entertainment tax on the IPL.
The first was taken in January, but the government made a U-turn on it.
In January, Chief Minister Ashok Chavan had said, “IPL is more entertainment and business than sports. We are not taxing test matches.”
During the Legislature session in April 2010, there was huge pressure from the Opposition on the state to tax the IPL matches that took place in Maharashtra in 2010, but at that time the cabinet did not have a unified vote on this.
Sources hinted that Nationalist Congress Party chief Sharad Pawar was not in favour of the decision since it would impact ticket sales and revenue earned by IPL.