Shrivastava noted that the IPL ₹5,120 crore”>earned a record ₹5,120 crore surplus in 2023, with total income touching a staggering ₹11,770 crore. Despite this, the Board of Control for Cricket in India (BCCI) did not pay any tax, as it enjoys tax exemptions under charitable status.

Meanwhile, research institutes in India pay tax on everything from lab equipment to software licenses. “Entertainment is subsidized. Research is taxed,” wrote the IISc professor.

A case for taxing IPL

In his post, Shrivastava questions why the Indian Premier League (IPL) — one of the world’s most lucrative sports leagues — remains largely untaxed, while research institutions continue to pay steep levies on basic equipment and software.

He backed his case for taxing the IPL with numbers – the IISc professor pointed out that IPL 2024 and 2025 estimate annual revenues are projected to reach ₹12,000 to 13,500 crore. “And that’s just one part of the larger earnings ecosystem,” he wrote, noting how IPL franchises also enjoy tax breaks.

“BCCI enjoys income tax exemptions under charitable status. IPL franchises — many owned by billionaires — also benefit from favorable tax treatments on capital gains,” wrote Shrivastava. “Players’ salaries are taxed individually, but franchise profits and BCCI revenues largely escape corporate taxation.”

What if IPL were taxed?

The Bengaluru professor said that taxing the IPL would raise more than ₹6,000 crore a year, and those funds could be used to fund research and development in India. He argued that if even a 40% tax were applied to IPL profits, India could raise nearly ₹6,000 crore annually – enough to fund several IITs or a national innovation corpus.

“If a simple 40% tax applied just on BCCI’s IPL profits, nearly ₹15,000 crores could have been raised over three years — enough to fund 10 new IITs or a national deep-tech innovation corpus,” he wrote.

Adding franchise profits to this would raise another ₹320 to 480 crore every year, he said. “In total, nearly ₹6,000 crores per year could be redirected into research, just from the IPL ecosystem.”

Despite earning in billions, the BCCI does not pay a single rupee in income tax as it enjoys an exemption under Section 12AA of the Income Tax Act, reported the Financial Express. The report explains that the BCCI is classified as a charitable entity because its primary objective is to promote and develop cricket.

A reflection on nation-building

The IISc professor ended his post with a reflection on nation building. He said that India and Indians have no dearth of money, but they lack the vision to think ahead.

In his critique of India’s current economic and policy priorities, Shrivastava questioned how the country allocates national attention and funding. “India doesn’t lack money. Indians don’t lack money. What we lack is the vision to invest in the future. Businessmen wired for quick returns dominate,” he wrote.

As a result of this short-sightedness, India is a country that imports semiconductors while celebrating IPL. “We celebrate Bollywood but lag in healthcare innovation. We celebrate quick IPOs but underfund R&D,” he said, adding that a funding push to research could help India compete with countries like China and Germany.

“Entertainment keeps the present alive. Research builds the future. It’s time India starts rewarding not just quick fame, but future builders,” he concluded.

The post has gone viral online with more than 11,000 reactions and hundreds of comments praising the professor for highlighting a vital issue.