Himachal Pradesh on Wednesday decided to partially waive entertainment tax imposed on Kings XI Punjab for the IPL matches played at the Himachal Pradesh Cricket Association's (HPCA) picturesque stadium in Dharamsala.
The cabinet meeting, chaired by Chief Minister Virbhadra Singh, decided to waive 90 percent entertainment tax from Kings XI Punjab for the three Indian Premier League (IPL) matches played in May 2011.
The HPCA is headed by Anurag Thakur, a Bharatiya Janata Party (BJP) MP and son of former chief minister Prem Kumar Dhumal.
A spokesperson for Kings XI Punjab told IANS that the government in 2011 decided to impose 100 percent entertainment tax for the matches.
"The government had decided to impose 100 percent entertainment tax in 2011 without any notification. However, it was in 2012 the government issued a notification and imposed 10 percent entertainment tax. So we had challenged the 2011 decision," he said.
Official sources said now the financial implication on Kings XI Punjab after reducing the entertainment tax is around Rs.20 lakh.
Before 2011, there was no entertainment tax in the state on the cricket matches.
The present Congress government is currently at loggerheads with the HPCA over providing security free of cost at the IPL matches.
Chief Minister Virbhadra Singh has said the HPCA would have to foot the security bill.
The HPCA, he has said, is a commercial organisation, so it would be charged accordingly.
The HPCA's new showpiece venue, located some 250 km from the state capital, has a 21,600-seating capacity, besides a world-class indoor stadium comprising video analysis facilities for both bowlers and players, a club lounge, restaurant, bar and banquet hall.
