Govt suspends BCCI tax exemption ahead of WC

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Published: Wednesday, January 19, 2011, 9:55 [IST]
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Govt suspends BCCI tax exemption

The BCCI had been upto no good and needs to be punished. That's what the central government feels, anyway. The central body has decided to withdraw customs duty exemption on import of goods by the BCCI or bodies certified by it due to the fact that the cricket board has not complied with a slew of mandatory requirements.

The move comes on the heels of the sports ministry's decision to de-recognise the BCCI as a national sports federation or the apex body of cricket in India.

The move will undoubtedly impact the plans of the BCCI for the world cup which it will be co-hosting from February 19.

"...it is informed that henceforth BCCI would not be eligible to avail itself of duty exemption under notification no 21/2002 customs dated 1.3.2002 or any other customs notification,"
read the government-ratified notice. "Thus goods imported by BCCI or certified by BCCI for import are not entitled to any exemption benefit which is available to sports goods or equipment or consumables imported or certified by a national sports federation (NSF) or apex body," central board of excise and customs (CBEC) said in a circular."

The decision, according to Deloitte India Indirect Tax leader Prashant Deshpande, "is a setback to the stakeholders associated with the forthcoming World Cup proposed to be staged in India who would now be visited with a customs duty burden of up to 26.85 per cent on sports requisites".

The circular said that the concessions were withdrawn as BCCI did not submit the necessary documents to the ministry of youth affairs and sports.

India along with Bangladesh and Sri Lanka is organising the ICC World Cup Cricket 2011 which is being co-hosted by BCCI.


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