AP House panel not in favour of tax exemption to IPL matches

The Departmentally Related Standing Committee on Revenue of the Andhra Pradesh Legislature felt that it was not proper to give tax exemption to the IPL T20 matches held here as it deprived substantial revenue to the local bodies.
"During discussions on the revenues derived through entertainment tax, the committee has also observed that giving tax exemption to Sunrisers IPL T-20 cricket matches at Hyderabad is not proper as all those matches are being held on highly commercial lines and recommend to reconsider the issue since it deprives huge amount of revenue to the local bodies," the committee said in its 'observations and recommendations' in the report on Demands for Grants 2013-14.

The state government had given entertainment tax exemption to IPL team Sunrisers in the interest of sports promotion.
The committee observed that the rightful share in entertainment tax is not being paid to the local bodies though it is mandatory by statute.
The panel has expressed its serious concern at the "casual attitude in providing the statutory share of entertainment tax to local bodies which is mainly intended to augment their revenues."
The committee recommended to provide the rightful share in entertainment tax to local bodies regularly on quarterly basis without any further delay and also to pay arrears of the previous years, if any.

Observing that the maximum ceiling limit of Rs 2,500 per annum on all the professionals alike is not justifiable, the committee recommended the state government to pursue with the Union government to take suitable measures so as to levy more professional tax on high earning professionals.