Given the way Indian authorities treat sports, it came as no surprise that even the Indian leg of the Formula 1 circuit got embroiled in controversies ever since it started.
Bureaucratic hurdles, right from drawing out a separate contract due to specific taxation laws, to hiring a separate legal firm for the Indian GP, to red tapism during import and export of race material, to levying unnecessary taxes, the rules and regulations that govern such initiatives are out to bust a sport that may provide careers and employment opportunities for scores of our countrymen.
Certain detrimental rules that catch one's attention are that 1/19th of revenues earned are subject to taxes. This inspite the fact that the Jaypee Group has funded the entire race on it's own which also includes constructing a world class track and stadium.
Countries which have been hosting races for over a decade do not charge such taxes. Why just us??
If the government doesn't help organise the event why should it levy unnecessary taxes on the organisers. Instead of helping them (they are promoting Brand India to the racing world) to conduct this event, they're out to skim the organisers who're helping to promote the game in our country. Why??
While it's agreed that entertainment taxes are levied on the IPL and other tournaments as well, isn't it possible for the government to provide a tax holiday for a fledgling sport in the country? Rather than doing that, the courts are entertaining PILs on cancelling the race, just 3 days prior to the event. This can happen only in India.
The organisers for this race have to shell out over $500 million to conduct the race with around 20-30% of the same as recurring costs. So much so for promoting and helping the industry.
Out of the 20 races on the F1 calendar, India is only one out of the 3 countries where the government does not play a part in organising a race. But must be the only country where the government goes all out to ensure that the race doesn't happen.
The authorities at ASSOCHAM did concede that the race has helped tourism in the country. Airlines, hotels, local tourism and local businesses earned over Rs. 10,000 cr as a direct result of the race. And one can not put a number on to the brand value that India would have gained as a result of the race.
One important detail to note here is that while the entire globe struggles under the grip of a depression, F1 has not suffered much because it's supported by the automobile industry. The automobile industry along with manufacturing are regarded as the bell weather of any economy.
This sport has the potential to create jobs, to provide more business to entrepreneurs, more media, more events, promote tourism and not to mention provide career opportunities to youngsters.
Motor sport racers like Narain Karthikeyan, Karun Chandhok, Armaan Ebraahim, Ashwin Sundar and the likes have proved that there are careers to be made out of this sport.
Many business groups like the Jaypee Group, the UB Group, the Sahara Group, the JK Tyres Group, the Mahindra Group have identified, recognised and invested in motor sports. Why is it taking so long for the government to do so??
One just hopes that certain sane minds identify and appreciate the tangible and intangible benefits that this sport will bring to the country. The Federation of Motor Sports Clubs of India (FMSCI) gets much needed support from the government and puts a structure around the sport and provide the infrastructure the way cricket and other sports are treated.
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| Buddh International Circuit |
Certain detrimental rules that catch one's attention are that 1/19th of revenues earned are subject to taxes. This inspite the fact that the Jaypee Group has funded the entire race on it's own which also includes constructing a world class track and stadium.
Countries which have been hosting races for over a decade do not charge such taxes. Why just us??
If the government doesn't help organise the event why should it levy unnecessary taxes on the organisers. Instead of helping them (they are promoting Brand India to the racing world) to conduct this event, they're out to skim the organisers who're helping to promote the game in our country. Why??
While it's agreed that entertainment taxes are levied on the IPL and other tournaments as well, isn't it possible for the government to provide a tax holiday for a fledgling sport in the country? Rather than doing that, the courts are entertaining PILs on cancelling the race, just 3 days prior to the event. This can happen only in India.
The organisers for this race have to shell out over $500 million to conduct the race with around 20-30% of the same as recurring costs. So much so for promoting and helping the industry.
Out of the 20 races on the F1 calendar, India is only one out of the 3 countries where the government does not play a part in organising a race. But must be the only country where the government goes all out to ensure that the race doesn't happen.
One of the only 2 Indians to race in a Formula 1 car, Karun Chandhok rightly said that while there are socio-economic issues and Formula 1 is not a priority, the least the government can do is not to hinder the process of conducting a race in our country. The track, the race, the stadium etc have all been constructed at zero cost to the government, so why put a spanner in the works?
Bernie Ecclestone has already pulled out of the Indian leg for 2014 citing 'political uncertainty' in India and is not sure if F1 will return in 2015. Wonder what will happen to this world class facility built by the Jaypee Group??
Bernie Ecclestone has already pulled out of the Indian leg for 2014 citing 'political uncertainty' in India and is not sure if F1 will return in 2015. Wonder what will happen to this world class facility built by the Jaypee Group??
The authorities at ASSOCHAM did concede that the race has helped tourism in the country. Airlines, hotels, local tourism and local businesses earned over Rs. 10,000 cr as a direct result of the race. And one can not put a number on to the brand value that India would have gained as a result of the race.
One important detail to note here is that while the entire globe struggles under the grip of a depression, F1 has not suffered much because it's supported by the automobile industry. The automobile industry along with manufacturing are regarded as the bell weather of any economy.
This sport has the potential to create jobs, to provide more business to entrepreneurs, more media, more events, promote tourism and not to mention provide career opportunities to youngsters.
Motor sport racers like Narain Karthikeyan, Karun Chandhok, Armaan Ebraahim, Ashwin Sundar and the likes have proved that there are careers to be made out of this sport.
Many business groups like the Jaypee Group, the UB Group, the Sahara Group, the JK Tyres Group, the Mahindra Group have identified, recognised and invested in motor sports. Why is it taking so long for the government to do so??
One just hopes that certain sane minds identify and appreciate the tangible and intangible benefits that this sport will bring to the country. The Federation of Motor Sports Clubs of India (FMSCI) gets much needed support from the government and puts a structure around the sport and provide the infrastructure the way cricket and other sports are treated.
I congratulate and thank Sanjeev for bringing this topic.. I would like to add that we are to be blamed for this as we choose the government and those people who really love the country and have capabilities often shy away from Political jobs thinking it to be a pool of muddle.. What to say I feel ashamed of myself as I am one of them..Thanks Amit
ReplyDeleteThe government is broke. It's coffers are empty and it will do everything to squeeze money out of us in the name of taxes. Formula 1 means nothing to our babus. With the global economy faltering, F1 is bound to hurt in the coming years. It is an unsustainable sport anyway.
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