Islamabad, February 20, 2025 – Pakistan has decided to grant a tax exemption on income generated from the ICC Champions Trophy 2025, a move aimed at ensuring smooth operations for the highly anticipated cricket tournament.
This decision aligns with the International Cricket Council (ICC)’s standard hosting agreements, which mandate such exemptions for host nations.
The ICC Champions Trophy 2025 is set to take place primarily in Pakistan, with some matches being hosted in Dubai, following India’s refusal to play in Pakistan. Given the magnitude of this event, Pakistan had approached the International Monetary Fund (IMF) to seek approval for the exemption. Reports suggest that the IMF has granted its consent, allowing Pakistan to proceed with its tax-free policy for the tournament.
The ICC Champions Trophy is a prestigious One Day International (ODI) tournament that occurs once every four years. Pakistan was awarded the hosting rights for the 2025 edition on November 16, 2021, marking a historic moment as the country prepares to host its first global cricket event since the 2009 attack on the Sri Lankan team. The last major international cricket tournament held in Pakistan was the 1996 Cricket World Cup, which was co-hosted alongside India and Sri Lanka.
As per the hosting agreement between Pakistan and ICC, all revenues generated by the ICC Business Corporation (IBC), ICC, its subsidiaries, member boards, players, match officials, and related entities will be exempt from income tax. However, this exemption does not extend to Pakistani residents, including the Pakistan Cricket Board (PCB), local businesses, and service providers involved in the event. Additionally, there will be no exemption on sales tax or federal excise duty (FED).
The PCB, which governs cricket in Pakistan, had already assured the ICC of this tax relief at the time of securing the tournament’s hosting rights. A similar exemption was previously granted when Pakistan was set to host the ICC Champions Trophy 2008, which was later moved due to security concerns. Such tax exemptions are a common practice in international sports, with countries like Australia granting similar reliefs for the ICC T20 World Cup 2020.
To formalize this exemption, Pakistan’s Revenue Division has proposed an amendment to the Income Tax Ordinance, 2001, adding a new clause (98AA) to the Second Schedule. This amendment, approved by the Economic Coordination Committee (ECC), enables the Federal Board of Revenue (FBR) to issue a Statutory Regulatory Order (SRO) exempting the ICC’s income from the Champions Trophy.
The exemption has been framed to ensure that Pakistan’s hosting rights remain intact without any financial hindrances. Authorities emphasize that this should not be viewed as a revenue loss, as failing to provide the exemption could have jeopardized Pakistan’s ability to host the tournament.
With the tax relief now in place, Pakistan is set to welcome international teams, players, and officials for the ICC Champions Trophy 2025, reaffirming its return as a major cricketing destination.
