The Maharashtra government will levy entertainment tax on cricket matches, including the Twenty20 matches of the third edition of Indian Premier League.
"The government has not charged any tax on the cricket matches so far and, therefore, the decision has been taken at the cabinet meeting today," Chief Minister Ashok Chavan said.
"Considering the changing cricket scenario and commercialisation of the game, the government has decided to impose the entertainment tax," Principal Secretary of Revenue Department Ramesh Kumar said.
The quantum of tax for matches held in Mumbai will be 25 per cent and for those played at venues located within the jurisdiction of other municipal corporations will range between 15 and 20 per cent, Kumar said.
Reacting to the state government's decision, IPL Chairman and Commissioner Lalit Modi told reporters that the private league has no issue over paying tax.
"It is not an issue at all. If there is an entertainment tax, we will pay it," he said.
The government is expecting revenue of Rs 15 crore per year from the tax levied on cricket matches, Kumar said.
The government has also decided to levy tax on Internet Protocol Television (IPTV), live orchestras in bars and pubs along with the cricket matches, he added.
