The Hindu 18.03.2011
Kochi Corporation pondering tax rebate for IPL matches
Corporation Council to decide the issue on March 21
The Kochi Corporation on March 21 will decide on the question of allowing entertainment tax rebate for the matches to be played in Kochi during the India Premier League (IPL) cricket series.
The Corporation Council meeting scheduled for the day will decide on the subject by including it in the regular business agenda of the civic body, said Tony Chammany, Kochi Mayor.
The owners of the Kochi Tuskers Kerala earlier had requested full waiver of the entertainment tax on gate collection.
However, this proposal was opposed by one of the councillors.
Vivek Venugopal, co-owner of the team, had earlier said they were requesting the Kochi Corporation to give a 100 per cent waiver on the entertainment tax and stated that several other cities had given the exemption during the first three years of the sporting event.
Councillor's opposition
The team owners had won the bid for Kochi for around Rs. 1,500 crore a few months ago.
An all-party meeting convened by the Kochi Corporation to discuss the issue had recommended to the civic authorities to give 50 per cent discount on the entertainment tax on gate collection. The civic authorities had placed the suggestion before the council after including it in the supplementary agenda. When the issue came up for discussion, N. Venugopal, a Congress councillor, argued that the team should not be given any discount considering the financial crisis of the civic body.
The civic authorities were forced to postpone the decision following his opposition as the supplementary agenda could only be passed unanimously.
It was after gauging the sentiments of the civic society and the business community of the city that the Corporation decided to allow the rebate.
According to the rule, 48 per cent of the gate collection can be charged as entertainment tax. In this case, the organisers are expecting around Rs. 3 crore as gate collection and five matches will be played here. The all-party meeting and the Steering Committee of the Corporation have cleared the proposal for tax rebate, said Mr. Chammany.
The Corporation need not provide any facility for the event and can get a considerable amount as tax. Moreover, holding the event in the city will bring business to the city as a whole. The Kochi Corporation is of the view that the city should not lose the event on a dispute over the tax rebate, he said.
