Maharashtra to levy entertainment tax on cricket matches

MUMBAI: The Maharashtra Government will levy entertainment tax on cricket matches, including the Twenty20 matches of the third edition of Indian Premier League.
"The government has not charged any tax on the cricket matches so far and therefore, the decision has been taken at the cabinet meeting," Chief Minister Ashok Chavan said on Wednesday.
"Considering the changing cricket scenario and commercialisation of the game, the government has decided to impose the entertainment tax," Principal Secretary of Revenue Department Ramesh Kumar said.
The quantum of tax for matches held in Mumbai will be 25 per cent and for those played at venues located within the jurisdiction of other municipal corporations will range between 15 and 20 per cent, Kumar said.
Reacting to the state government's decision, IPL Chairman and Commissioner Lalit Modi told reporters that the private league had no issue over paying tax.
"It is not an issue at all. If there is an entertainment tax, we will pay it," he said.
The government is expecting ran revenue of Rs 15 crore per year from the tax levied on cricket matches, Kumar said.
The government has also decided to levy tax on Internet Protocol Television (IPTV), live orchestras in bars and pubs along with the cricket matches, he said.
“We expect Rs 100 crore revenue from entertainment tax levied on the matches, IPTV, orchestras and pubs," Kumar said.
The rate of tax would be same for IPTV and live orchestras. The government would charge Rs two lakh for pubs in five star hotels and Rs one lakh for others in Mumbai. The tax of upto Rs one lakh would be charged for pubs outside the city, the official said.
With new taxes approved by the cabinet today, the government is expecting to complete revenue target of Rs 360 crore for the financial year, the official said.
Horse racing would also be costly, as the government has increased the betting fee by 10 per cent. The government would charge 20 per cent amount on betting through machines and 30 per cent on betting through permit holder bookmakers.
About Rs 20 crore revenue would be generated with the increased in the tax by 10 per cent, Kumar said.