In a move aimed at facilitating the International Cricket Council (ICC) and foreign players during the Champions Trophy 2025, Pakistan’s Economic Coordination Committee (ECC) announced on Thursday the waiver of income tax on earnings from the tournament. The decision, endorsed by the International Monetary Fund (IMF), is part of the hosting agreement with the ICC, ensuring that neither the ICC nor its affiliates, including players, officials, and media representatives, will be subject to income tax.
The matches kicked off on Thursday, with the final slated for March 9, 2025. However, Pakistan faced a disappointing start, losing their opening match to New Zealand. Despite this, the government’s focus remains on the broader success of the event, as highlighted by the tax exemption granted to international participants.
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While the tax exemption benefits the ICC and foreign players, Pakistani residents involved in the tournament, including Pakistan Cricket Board officials, will still be required to pay their income taxes. This differential treatment has sparked debate, particularly as salaried individuals, teachers, and researchers were recently hit with tax notices demanding arrears on a previously abolished rebate.
The tax relief for the ICC was granted through a statutory regulatory order, bypassing the need for parliamentary approval. Some ECC members raised concerns about this exemption, but the Federal Board of Revenue (FBR) argued that similar concessions had been made by other host nations. This exemption aligns with the ICC’s hosting rights agreement, which stipulates that no taxes be levied on tournament-related revenues.
As Pakistan welcomes its first global cricket event since the 1996 World Cup, co-hosted with India and Sri Lanka, the country has also extended its LNG procurement agreement with Azerbaijan’s SOCAR, ahead of Prime Minister Shehbaz Sharif’s visit to the country. Despite the excitement surrounding the Champions Trophy, concerns remain about the government’s approach to tax policies, particularly in its prioritization of international agreements over domestic fiscal challenges.
