Calls for the BCCI to pay income tax intensified this week after an IISc professor noted that the world’s wealthiest cricket governing body had earned approximately Rs 15,000 crore over the past three years. The scholar contrasted this against the taxes paid by research institutes — contending that “entertainment was subsidised” in India.
“If a simple 40% tax applied just on BCCI’s IPL profits, nearly Rs 15,000 crores could have been raised over three years — enough to fund 10 new IITs or a national deep-tech innovation corpus. Add franchise profits (Rs 800 to Rs 1,200 crore/year), and another Rs 320 to Rs 480 crores could be collected annually. In total, nearly Rs 6,000 crores per year could be redirected into research, just from the IPL ecosystem,” the IISc Bengaluru professor wrote on LinkedIn.
Professor Mayank Shrivastava however added that it was not just the IPL which “enjoyed tax breaks and state subsidies”. He noted that many Bollywood productions had received such exemptions and many regligious trusts commanded “vast commercial empires” while remaining tax free. New sports leagues were also given startup tax holidays.
“If even a fraction of these sectors were taxed modestly, thousands of crores could fund India’s scientific foundations. India doesn’t lack money. Indians don’t lack money. What we lack is the vision to invest in the future. Businessmen wired for quick returns dominate. True entrepreneurs — those willing to build ecosystems patiently — are rare,” he added.
Why is the BCCI not taxed?
The Board of Control for Cricket in India has earned approximately Rs 15,000 crore over the past three years — led by revenue from the popular IPL segment. BCCI is not required to pay any income tax as it is registered as a charitable organisation under Indian law and has a primary objective of promoting and developing the sport. Its tax-exempt status has faced additional scrutiny after memorandums were introduced to allow for commercial activity linked to the IPL. The Bombay High Court also quashed a tax advisory from the Income Tax Department in mid-February this year. The I-T department claimed that the fundamental objectives of BCCI had been altered by its pivot into commercial activities.