The Tamil Nadu government has said that the Indian Premier League will be brought under the Tamil Nadu entertainment tax act. This will mean that 23 to 28 per cent of ticket collection will go to the state government's coffers.
The government announcement is in response to a Madras High Court observation last month that it "could not appreciate" a tax exemption to IPL. It had sought a response from the Tamil Nadu government on the issue.
The court had also directed the state government to file a counter by July 14 to a PIL which had sought regulation of IPL matches in the state according to Tamil Nadu Entertainment Tax and Tamil Nadu Cinemas Act since the BCCI and Tamil Nadu Cricket Association organise the matches for the entertainment of the public.
It must be noticed that the IPL tickets are sold for Rs 25000 to Rs 40000 in the home state of two-time champions Chennai Super Kings.
Maharashtra is another state where there was no entertainment tax for the IPL till last year. The CAG report had asked the state to emulate the Delhi government and consider imposing entertainment duty on the sale of tickets for IPL matches.
This year the Maharashtra government decided to levy tax on all cricket tournaments, including the cash-rich T20 league. The state, however, cannot recover the loss it incurred on account of tax waiver for the last three years including two seasons of the IPL played in India.