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.
