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Shah Rukh Khan, with wife and daughter, cheers on the Knight Riders from the Rs 32,000 lounge at the Eden Gardens
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The state government has introduced a special amusement tax on tickets for sporting events that is likely to make the IPL action at Eden Gardens pricier from next year.
The Assembly on Monday passed the West Bengal Taxation Laws (Amendment) Bill 2010, which levies a 20 per cent amusement tax “on sporting event tickets that cost Rs 500 and more on a daily basis and Rs 3,000 and more on a season basis”.
The tax being indirect, the burden would have to be borne by the buyer of the ticket. A Rs 32,000 ticket would attract a tax of Rs 6,400. The money collected would go to the state exchequer. The plan is to spend the money on the development of sports infrastructure and to help young, underprivileged sportspersons in the state.
“Such is the craze of the IPL that people are willing to buy tickets regardless of the price. It is a commercial venture and should be treated accordingly. Introduction of the tax is a welcome move,” said sports minister Kanti Ganguly.
The state government had started work on the amendment in May this year after Ganguly submitted to the chief minister a proposal to tax tickets of IPL IV as “the (Twenty20) game is no longer only sports, but also entertainment”.
The state government expects to rake in “a considerable amount of revenue” from the IPL tickets alone. “A single ticket in the VVIP gallery is priced at Rs 32,000. Imagine the kind of revenue the tax would yield,” said Ganguly.
The Maharashtra government had earlier announced tax between 15 and 24 per cent on IPL tickets for next year.
The tax in Bengal would also apply to “high-priced” tickets for other cricket matches.
“Tickets of international cricket matches priced at more than Rs 500 daily would attract the tax. Those who can afford tickets in that price range would not really mind shelling out a little extra,” claimed a sports department official.
Finance department sources said initially there were plans to promulgate an ordinance. “But by May work started on introducing this bill in the Assembly once its session recommenced,” said an official.
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