Maharashtra Govt to Levy Entertainment Tax on IPL from Next Session
Following criticism by opposition for not levying tax on the IPL, the Maharashtra government has decided to impose entertainment tax on matches from next season, said media reports.
“The Government has decided to levy entertainment tax on IPL from the next season,” Deputy Chief Minister Chhagan Bhujbal was quoted as saying.
The state cabinet took the decision in the regard last month.
Bhujbal, however, said that the minutes of the meetings were confirmed in the cabinet meeting that was held on Friday, reports said.
The opposition Shiv Sena-BJP combine had rapped the state government during the Assembly session last month for not imposing entertainment tax on IPL matches.
Opposition parties had even gone to allege that NCP chief Sharad Pawar was behind the tax waiver for IPL.
In reaction, chief minister Ashok Chavan had informed the Assembly that none of the neighbouring states charged tax from IPL.
Besides, the Comptroller and Auditor General of India (CAG) had snubbed the state government for a loss of Rs five crore by sparing the IPL from paying entertainment tax.
“The IPL was conceptualised as an entertainment spectacle and was also pitched as the ultimate destination of TV entertainment,” the CAG report said, “It is thus obvious that the main objective of the IPL was to provide entertainment and hence merited levy of entertainment duty on sale of tickets.”
Earlier this week, the Bombay High Court also remarked that ‘prima facie this activity (IPL matches) is covered under Entertainment Tax’.
(Based on internet reports)
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