In a move hailed as a significant win for both sports and the national economy, the Economic Coordination Committee (ECC) has given its nod to a crucial tax exemption for the highly anticipated ICC Champions Trophy 2025. The decision, announced following an ECC meeting on Friday, will exempt the International Cricket Council (ICC) from income tax on all earnings generated from the prestigious tournament, set to be hosted in Pakistan.
The ECC meeting, presided over by Finance Minister Senator Muhammad Aurangzeb, saw a comprehensive review of the proposal put forth by the Revenue Division. The approved tax exemption is strategically aligned with global best practices, typically extended to major international sporting events. This incentive was a pivotal requirement for securing hosting rights for the Champions Trophy, underscoring the nation’s commitment to attracting world-class sporting spectacles.
Under the approved framework, the tax exemption will encompass all revenues earned by the ICC, its associated entities, officials, and non-resident delegates directly involved with the ICC Champions Trophy 2025. Importantly, while the international cricketing body enjoys this exemption, the ECC clarified that Pakistani residents, including the Pakistan Cricket Board (PCB), will remain liable for income tax on their earnings from the tournament. Furthermore, existing Sales Tax and Federal Excise Duty (FED) regulations will continue to be applied, ensuring that domestic tax contributions remain unaffected. The government anticipates that this targeted tax relief, rather than causing revenue loss, will ultimately stimulate economic activity linked to the event.
Beyond the landmark cricket decision, the ECC meeting addressed other pressing economic matters. A proposal from the Ministry of National Food Security & Research concerning the removal of the ban on commercial exports of sheep and goats to Kuwait was discussed but ultimately deferred, pending further review and due diligence. In other key approvals, the ECC sanctioned a Technical Supplementary Grant (TSG) of Rs. 6.859 billion for the Ministry of Energy (Power Division), aimed at bolstering development expenditures within the current financial year. Additionally, the extension of the LNG Framework Agreement between Pakistan LNG Limited (PLL) and SOCAR Trading for another three years was approved, ensuring Pakistan’s continued access to flexible and cost-effective LNG procurement.
These decisions underscore the ECC’s ongoing and vital role in shaping Pakistan’s economic trajectory, fostering international collaborations, and building a robust financial structure conducive to sustained growth and prosperity. The tax exemption for the ICC Champions Trophy 2025 is a testament to this commitment, paving the way for a successful tournament and highlighting Pakistan’s ability to host major global events.