ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved an income tax exemption for the International Cricket Council (ICC) in connection with the upcoming ICC Champions Trophy 2025.
The decision was made during an ECC meeting chaired by Finance Minister Senator Muhammad Aurangzeb at the Finance Division in Islamabad. Officials from key ministries and divisions, including the Minister for Petroleum, the Minister for Industries and Production, the Chairman of the Federal Board of Revenue (FBR), and other senior representatives, were in attendance.
According to an official statement, the exemption aligns with global best practices for hosting international sporting events. Under the standard agreement between the ICC and Pakistan, revenues generated by the ICC, its subsidiaries, associates, officials, and non-resident delegates will not be subject to income tax. However, local entities, including the Pakistan Cricket Board (PCB), will continue to be taxed on their tournament-related earnings. Additionally, no exemptions have been granted for Sales Tax or Federal Excise Duty (FED).
Officials clarified that the tax relief would not impact government revenues, as it was a mandatory requirement for securing the hosting rights of the tournament.
The committee also reviewed other key economic matters, including a proposal from the Ministry of National Food Security and Research regarding the export of sheep and goats to Kuwait. However, the decision was deferred for further review.
Additionally, the ECC approved a Technical Supplementary Grant (TSG) of Rs. 6.859 billion for development projects under the Ministry of Energy (Power Division) for the financial year 2024-25.
Furthermore, the committee extended the LNG Framework Agreement between Pakistan LNG Limited (PLL) and SOCAR Trading for another three years. Originally signed in 2023, the agreement allows PLL to procure LNG cargoes on a need basis without financial obligations or take-or-pay commitments. The extension is part of Pakistanβs strategy to ensure flexible and cost-effective LNG procurement based on seasonal demand.
