Entertainment tax on cricket match tickets sparks row

Thiruvananthapuram: The difference in exemption rate, fixed by the local self government department (LSGD), on entertainment tax for tickets of the upcoming one-day international cricket match at Kariavattom has kicked up a row.
In September 2022, the LSGD directed the corporation to collect 5% entertainment tax for tickets being sold for the cricket match at Kariavattom.
This time, LSGD directed the corporation to fix the entertainment tax at 12%. On both occasions, the rates were relaxed based on the request from Kerala Cricket Association (KCA). As per norms, civic bodies can levy tax in 24-48% range, and the corporation council fixed 48% tax for amusement shows, entertainment events, and the like.
Following KCA’s request, LSGD directed the civic body to relax the rates to 5% and 12% respectively in September 2022 and for the upcoming match. Corporation officials said that the debate is unwarranted since the civic body slashed the rates from 48% to 12% and there is no need to compare the rates at which tax is reduced even as the council has fixed entertainment tax in the range of 24-48%.
The city corporation had in 2022 sent a demand notice to KCA to pay entertainment tax for the match held in 2019, and KCA is learnt to have paid all the dues. The city corporation and KCA had earlier got into a tussle over payment of entertainment tax for tickets of the T-20 match between India and West Indies at Sports Hub in 2019. The corporation, which initially issued a demand notice for 48% of the price of admission, later revised it after KCA approached LSGD for relaxation.
The rate of entertainment tax is fixed as per the provisions of Kerala Local Authorities Entertainment Tax Act and in compliance with budget decisions. In 2017 and 2018, when matches were played in Thiruvananthapuram, due to the introduction of GST the corporation could not demand entertainment tax.
Meanwhile, sports minister V Abdurahiman said that tax has already been fixed. “From our experience, the benefit of tax relaxation does not reach the people,” he said. Clarifying his remark about people living in starvation need not come to watch cricket matches, he said that he only meant that those in a dire situation may not be able to pay for the cricket match tickets.
Congress leader Ramesh Chennithala said that spectators need to pay 30% tax as entertainment tax and GST. “It is plunder by the government. Majority of spectators are youths and students. They have been betrayed,” he said in a press note issued on Sunday.
The finance standing committee had earlier cited that corporation collected Rs 5.09-8 crore as entertainment tax till 2016-17. The finance standing committee had set a target of Rs 10.5 crore for 2017-18 in its budget as entertainment tax. However, with GST coming into effect, the target could not be met.