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This Article is From May 08, 2010

Maharashtra to impose entertainment tax on IPL from next season

Mumbai: Was it a logical policy decision or a face-saving measure for NCP chief Sharad Pawar? Whatever the reasons, finally the Indian Premier League will have to pay a 25 per cent entertainment tax from 2011.

For three seasons, the T20 extravaganza entertained millions of people and churned crores of rupees, but the Maharashtra government simply refused to implement its January 2010 decision to tax the IPL.

But after IPL came under the scanner for financial irregularities and Shiv Sena MLA Subhash Desai moved the Bombay High Court, the government seems to have hastily taken a call.

In his PIL, Desai told the court that the Delhi and Punjab governments had levied an entertainment tax on IPL since it was a commercial event.

But Desai claimed the Maharashtra government refused to do so, probably under pressure from Sharad Pawar, given his close ties with the BCCI.

The Bombay High Court asked Pawar to reply to the allegations by June 22.

"What is the use of the government taking a decision now? It is too late," said Madhav Bhandari, BJP Spokesperson.

This year, in season 3 itself, the government could have earned 12 crore rupees as entertainment tax on ticket sales. Not only have the freebies cost the exchequer crores of rupees, it has also once again dented Chief Minister Ashok Chavan's image.

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