The issue of tax exemption between the Indian government and the Board of Control for Cricket in India (BCCI) can cost the hosting rights of the International Cricket Council (ICC) Champions Trophy 2021 to India if it is not sorted out soon.

According to the reports, ICC is looking for options of the different nation (with same time zone as India) for hosting the event.

Last year, the tournament was hosted by England. “The Board expressed their concern around the absence of a tax exemption from the Indian Government for ICC events held in India despite ongoing efforts from both the ICC and BCCI to secure the exemption which is standard practice for major sporting events around the world,” said ICC in a media release.

“The Board agreed that ICC management, supported by the BCCI will continue the dialogue with the Indian Government but in the meantime directed ICC management to explore alternative host countries in a similar time zone for the ICC Champions Trophy 2021,” added cricket’s governing body.

The ICC board meeting which was also attended by BCCI acting secretary Amitabh Choudhary, has been stung by the experiences of the 2016 World T20 (hosted by India), for which tax exemption has not yet been approved, due to which the ICC suffered a revenue shortfall of $20-30 million.

Two years on, and despite constant reminders by the ICC and the BCCI, the Indian government has not changed its stand on providing exemptions.

Despite the BCCI’s attempts at facilitation, the ICC board remains wary of exposing itself to what some officials calculate could be losses of $100-125 million if the Indian government fails to provide tax exemption for the Champions Trophy and the 2023 World Cup.

According to a report published in the Indian Express, a BCCI official was quoted as saying,“The ICC should be cognizant of the fact that it was under the presidentship of Mr. Shashank Manohar that the IPL was shifted by BCCI to South Africa in 2009. The comment made by him then, that the IPL was shifted out due to the attitude of the Indian government, was made against the will of the BCCI’s Working Committee and was one of many blunders of Mr. Manohar that cost the BCCI deeply. It would be another blunder by another organisation being headed by the same man to unnecessarily rub the Indian government the wrong way, especially after the support that the government extended during the conduct of the ICC World T20 in 2016.”

-With IANS inputs