Published>Sun, Mar 07 10 02:43 PM
TheIndian Premier League (IPL) has driven a wedge between Maharashtra's ruling alliance, if the Opposition is to be believed.
The NCP is batting for an entertainment tax exemption for all the matches of the cricket gala that the state will host.
But chief minister Ashok Chavan's Congress is in no mood to grant such a concession, which will cost the state exchequer "Rs 300 crore". Interestingly, the state's finance minister, Sunil Tatkare, belongs to the NCP. The issue is close to the party's heart because its president, Sharad Pawar, represents IPL's governing body ? the Board of Control for Cricket in India.
On January 20, the cabinet decided to levy a 25 per cent tax on IPL matches held in Maharashtra.
But the decision is yet to be ratified.
Until the minutes aren't confirmed in the cabinet meeting, the decision cannot be executed.
Sources said the NCP ? after initially agreeing to the levy ? had second thoughts, and now wants the cricket gala to be a tax- free affair in the state.
Even as Chavan claimed there was no rollback of the cabinet decision, Tatkare said the state has decided to waive the tax to promote the sport. Clearly, the two parties aren?t talking in the same voice.
"The discussion in the January 20 meeting pertained to exempting Test matches from a tax to ensure the survival of the longer version of the game. We decided to limit the levy to One- day Internationals and Twenty20 matches because they don?t need a prop," said a Congress minister.
"It was accordingly decided that tickets for these matches should be taxed at 25 per cent in Mumbai and at 20 per cent in the rest of the state. Somehow in the subsequent meeting held on February 3, there was no mention of tax on IPL matches," the minister added.
Tatkare later told mediapersons that the decision to tax IPL matches had been revoked in the interest of the sport. His logic was that giving up revenue to the tune of Rs 20 crore annually would not dent the state exchequer.
The Opposition, however, differs.
"Our estimates suggest that the loss of revenue will be much higher. The minister is only counting gate money and even that is a faulty calculation.
In 2008 alone, the state lost Rs 70 crore on just ticket sales. This year, if we take into account ticket sales, advertising ( both in- stadia and TV) and telecast rights, the turnover is not going to be less than Rs 1,600 crore. If the levy is calculated at 20 per cent, we will be losing over Rs 300 crore," said state BJP spokesperson Madhav Bhandari.
He has written to Chavan and Tatkare on the matter. "I will meet them later this week. If they don?t relent, we will move the high court," Bhandari said.
Chavan, for his part, senses that the IPL doesn?t need any concession.
? Why should the IPL, an out and out commercial venture, get tax benefits? The tournament is a money- spinning machine for all participants and the state need not lose an opportunity to earn from it.
The amount could be used for infrastructure projects," sources close to the chief minister said.
But the game's franchisees are hopeful. " The BJP's calculations are wrong. Our collections from the stadium are not more than Rs 40 crore. So, the loss of revenue is Rs 10 crore at best," said a highly placed official in Reliance Industries Ltd, which owns the Mumbai Indians team in the IPL.
Source: Web Search
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