Sponsor requested Corporation to waive 10% entertainment tax for match

Reporter Broadcasting Corporation (RBC) had requested the Kochi Corporation to waive and exempt the entertainment tax for the proposed international friendly match it was sponsoring, featuring the Argentina national team. The match, originally scheduled for November 17, has since been called off. RBC managing director wrote to Mayor M. Anilkumar on October 16.

As per the Local Self-Government department’s order dated January 31, 2024, the Corporation is entitled to 10% of the ticket fare as entertainment tax. Waiving this would have resulted in a significant revenue loss for the civic body. While referring the request to higher authorities, a Corporation official recalled the Kerala High Court’s interim order directing the payment of ₹1.36 crore in connection with the waiver of entertainment tax for an Indian Premier League match held at the Kaloor International Stadium in April 2011.

The RBC request was included as an agenda item in the Corporation’s Finance Standing Committee meeting held on Tuesday (November 4), for which the notice had been prepared on October 24. The Opposition United Democratic Front (UDF) opposed the request. “The proposal was submitted without disclosing the number of tickets the sponsor intended to sell or the ticket pricing. Waiving the entertainment tax would have caused a substantial revenue loss to the Corporation,” said M.G. Aristotle, UDF Parliamentary Party secretary.

The Mayor responded that the matter was now irrelevant, as the match has been called off for the time being.

“Given the magnitude and global significance of this event, we humbly request the Kochi Municipal Corporation to kindly grant a waiver and exemption of the entertainment tax applicable to the match and related public events,” the RBC letter stated.

The reasons cited for the tax waiver included encouraging wider public participation by making ticket prices more affordable, showcasing Kerala as a premier sporting destination, boosting tourism and the local economy through the influx of national and international visitors, inspiring the youth of Kerala by giving them the opportunity to witness world-class footballers in action, and enhancing the global reputation of Kochi and Kerala as capable hosts of international sporting events.