Tax breather for hockey World Cup
After help poured in from all quarters for the Indian Hockey team, the Delhi government has done its bit by waiving entertainment tax for the hockey World Cup, beginning February 22 in the Capital. The decision was taken in a high-level meeting chaired by Delhi Finance Minister Dr A K Walia recently.
The government had recently given an exemption on luxury tax to the Commonwealth Games organising committee, despite the fact that the move will cost the Delhi exchequer Rs 30 crore. It had, however, rejected the committee’s demand to waive 12.5 per cent Value Added Tax on all its purchases.
For the hockey tournament, the 15 per cent entertainment tax on every ticket has been waived — the move will help Hockey India save nearly Rs 6.25 crore.
“The amount saved will depend on the number of spectators who turn up for the event. The maximum number of spectators expected from India and abroad are 17,000,” said a Finance official. The ticket prices range between Rs 100 and Rs 7,500.
The government has also agreed to waive luxury tax for participants and other delegates who will stay in the Capital during the World Cup.
The waiver will help Hockey India, which foots the bill of all delegates and players, save nearly Rs 45 lakh, since the government charges 10 per cent rack rent for each hotel room.
Nearly 400 players and delegates are expected for the tournament.
Besides the tax waiver, the tournament organisers also asked the Delhi government to provide 15 air-conditioned low-floor buses.
The proposal is pending with the government after the Delhi Transport Corporation expressed its reservations on offering the buses due to the high costs involved. The government spends Rs 10,000 on each bus every day.
The Games organising committee, meanwhile, had also asked for a waiver of entertainment tax.
“We have not taken any decision in this regard as the committee has not worked out the price of the tickets,” the Finance official said.