The Indian government’s recent sports taxation reforms have sparked intense debate. With a fiscal deficit of 6.8% in 2022, the government aims to increase revenue through taxation. The Goods and Services Tax (GST) on sports events has been a significant contributor. However, there are concerns about the impact on smaller sports leagues and clubs.
The 18% GST on sports events has led to increased ticket prices, affecting attendance. The government must strike a balance between revenue generation and promoting sports development. A possible solution is to introduce a tiered GST system, with lower rates for smaller leagues. This could help narrow the fiscal gap while promoting sports growth.