The Maharashtra Government has decided to levy entertainment tax on the organisers of the Indian Premier League.
The decision was taken at a cabinet meeting on Wednesday
IPL Chairman Lalit Modi reacted swiftly saying he has no objections. “We will pay entertainment tax if we have to,” he said.
The cash-driven annual T20 event has returned to India for the third season this year. The last edition was organised in South Africa due to security reasons.
Player auctions for IPL Season 3 were held in Mumbai on Tuesday. A lot of money exchanged hands there with teams spending big amounts to bid for and buy players.
Sources say the Mumbai Indians spent $2.75 million to purchase West Indies allrounder Keiron Pollard of this $750,000 as a maximum cap will go to the player and the rest goes into the IPL kitty. Similarly, the Kolkata Knight Riders purchase of Kiwi Shane Bond at a reported $1.3 million would put the difference between that sum and $750,000 in the IPL kitty.
In the first season, no state other than Maharashtra had exempted IPL from paying entertainment tax. Interestingly, IPL had not demanded any such exemption.
Some states like West Bengal and Punjab had asked IPL to pay for the security arrangements as well.