MUMBAI: Cheerleaders, live music, Bollywood bimbettes and little bit of cricket. The scintillating IPL might have redefined the Indian entertainment scene but the Maharashtra government considers it as ‘serious cricket’ and hence worthy of entertainment tax exemption. The benevolent state government, not withstanding its financial worries, suo motu has decided to waive 25% entertainment tax for the IPL thereby giving away revenue of at least Rs 8-10 crore per year.

Top officials from the state’s revenue ministry, who didn’t wish to be identified, informed ET about the state’s munificence. Mumbai will host 10 matches including two semi-finals and one final. As per the Bombay Entertainment Duty Act 1923, any show, musical, performance that’s organised with an intention of making profit need to pay entertainment tax to the state government.

Usually, the government levies entertainment tax on test matches and one-day internationals. However, often the tax is waived off following requests from the BCCI or respective state associations. “But in this case, the direct beneficiaries are private industrial houses or Bollywood stars who own teams, so there is every reason to charge entertainment tax,” a top functionary of the Congress-NCP government confided with ET.

The franchise owners, mostly business tycoons and Bollywood stars, have spent crores of rupees to buy teams and players for the world’s richest cricket tournament that began on April 18. In all, 59 Twenty20 matches will be played this year.
Source: economictimes.indiatimes.com