Un taxed earnings from BCCI's IPL trigger calls for policy reform, suggests Bengaluru academic
Professor Mayank Shrivastava from the Indian Institute of Science (IISc) Bengaluru has stirred up a storm, suggesting that the Indian Premier League (IPL) be taxed to fund research and development in India. Shrivastava sparks a conversation questioning why entertainment is subsidized while research is taxed, drawing parallels between the IPL's massive earnings and researchers' burdens.
According to Shrivastava's LinkedIn post, the IPL raked in a record ₹5,120 crore surplus in 2023, with total income touching a whopping ₹11,770 crore. While this, the Professor notes, earns the Board of Control for Cricket in India (BCCI) no income taxes due to its charitable status, research institutes in India are left taxed on essentials like lab equipment and software licenses.
The post further delves into the details of BCCI's tax exemptions and favorable franchise tax treatments. Moreover, while players' salaries are taxed, franchise profits and BCCI revenues largely escape corporate taxation.
Boosting the argument, Shrivastava reveals that taxing the IPL could raise over ₹6,000 crore annually. With a simple 40% tax on IPL profits, the nation could raise approximately ₹15,000 crores over three years - an amount sufficient to fund ten new IITs or a national deep-tech innovation corpus. Adding franchise profits to this figure raises another ₹320 to ₹480 crore every year.
Although the BCCI currently pays no income tax under Section 12AA of the Income Tax Act, the government still generates revenue through TDS on player salaries. However, research institutes in India are not as fortunate.
In a reflection on nation-building, Shrivastava criticizes the current economic and policy priorities in India, questioning the country's lack of forward-thinking and excessive focus on quick returns. As a result, India imports semiconductors while cheerleading IPL, celebrates Bollywood but lags in healthcare innovation, and invests in quick IPOs but underfunds R&D.
Now popular online with over 11,000 reactions and countless comments commending the professor for raising an essential issue, the post challenges the conventional perception of subsidizing entertainment over funding research. With potential benefits of injecting substantial funds into innovation, a more intense discussion on the topic is inevitable.
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- Professor Mayank Shrivastava's controversial idea of taxing the Indian Premier League (IPL) to fund innovation is gaining traction, sparking debates about the disparity between subsidizing entertainment and taxing research.
- The Board of Control for Cricket in India (BCCI) earned a record ₹5,120 crore surplus in 2023, with a total income of ₹11,770 crore, yet remains exempt from income taxes due to its charitable status.
- In contrast, research institutes in India are taxed on essential items like lab equipment and software licenses, while IPL profits and BCCI revenues are largely exempt from corporate taxation.
- The suggestion of taxing the IPL could potentially raise over ₹6,000 crore annually, enough to fund ten new IITs or establish a national deep-tech innovation corpus, according to Shrivastava.
- Although the BCCI currently pays no income tax under Section 12AA of the Income Tax Act, it still generates revenue through TDS on player salaries.
- Shrivastava's post aims to redirect funding priorities in India, criticizing the excessive focus on quick returns and lack of forward-thinking, as evidenced by the country's import of semiconductors, laggard healthcare innovation, and underfunding of R&D.
- The post, which has garnered over 11,000 reactions and numerous comments online, challenges the conventional perception of subsidizing entertainment over funding research.
- Other trending news topics in India include weather updates, stocks and markets, tech innovations, celebrity news, and political developments.
- The discussion on taxing the IPL to fund innovation promises to intensify, offering potential benefits for India's economic, policy, and research landscapes.
