ISLAMABAD – The franchises of Pakistan Super League are asking for taxexemptions from the government citing losses they incurred in the first twoeditions of the event.
The PSL franchises have also called for a financial restructuring of theleague to make it profitable for them.
As per their claims, the franchises incurred losses ranging from Rs. 200million to Rs. 700 million each in the first two seasons of the league.
According to a report, PCB has sent a letter to Punjab finance minister,which contains consolidated financial details of the five franchises fromthe 2016 and 2017 seasons.
PCB also sent the letter to all franchises by mistake, which disclosed thefinancial details of each franchise to others.
The PSL franchises have been raising questions over the amount of tax theyhad to pay.
– As per the letter, Lahore Qalandars have incurred the largest losses, over Rs 310 million in 2016 and over Rs. 420 million in 2017. – Quetta Gladiators have suffered over Rs 46 million in 2016 and over Rs. 63 million in 2017. – Karachi Kings have incurred losses of over Rs 117 million in 2016 and Rs 60 million in 2017. – Islamabad United suffered over Rs 184 million in 2016 and over Rs 241 million in 2017. – The 2017 champions, Peshawar Zalmi, incurred a loss of over Rs. 237 million in 2016. However, Zalmi’s losses came down drastically in 2017 to just over Rs 20 million.
The franchises have also raised questions over the payment of the annualfranchise fee to PCB in US dollars, as the Pakistani rupee has depreciatedagainst the dollar in the recent months.
The owner of Multan’s Franchise, who pulled out after its first season, isreported to have argued that rupee’s continuous fall against the dollarmade it unfeasible for them.
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The franchises also have concerns over the high taxes they had to pay tothe government. The letter said the franchise fees made up 30% to 91% of afranchise’s total costs in 2016 and 2017.
“In addition to the above, the Federal Government’s withholding taxcurrently chargeable at 10% of the franchise fee is also levied by the PCBand deposited with the Federal Board of Revenue. The amount offranchise fee plus taxes adds to the financial hardships of the franchiseewho in addition to these, also incur costs of players’ match fees,logistics etc in the UAE and Pakistan. Thus it adds to their financialburden since they are incurring heavy losses,” the letter said.
The PCB argued:
Once the league moves back to Pakistan properly then not only will thefranchises be able to move towards breaking even (because of lower costs),but it will also generate “higher economic activity in the country.
Until then, the PCB has sought the provincial government to provide taxrelief to the franchises, sponsors and rights holders for a period of fiveyears.
Via *ESPNcricinfolink*
