Pakistan approves tax exemptions for ICC revenues in Champions Trophy 2025

Pakistan’s Economic Coordination Committee (ECC) on Thursday approved income tax exemptions for the International Cricket Council (ICC) in connection with the ICC Champions Trophy 2025.

The decision was made in a meeting chaired by Finance Minister Muhammad Aurangzeb at the Finance Division in Islamabad.

According to the ECC, these exemptions are in line with international best practices for hosting major sports events. Under the hosting rights agreement between ICC and Pakistan, ICC revenues, its subsidiaries, associates, officials, and non-resident delegates will be exempt from income tax.

However, Pakistani residents, including the Pakistan Cricket Board (PCB), will be subject to standard tax regulations on their earnings from the tournament. Sales Tax and Federal Excise Duty (FED) will still apply.

Officials noted that the tax waiver was a prerequisite for securing the tournament and would not result in a revenue loss.

The committee also reviewed a proposal from the Ministry of National Food Security & Research to lift the ban on commercial sheep and goat exports to Kuwait but deferred the decision for further review.

Additionally, the ECC approved a PKR 6.859 billion Technical Supplementary Grant for the Ministry of Energy (Power Division) to support development projects in the 2024-25 financial year.

The ECC also extended the LNG Framework Agreement between Pakistan LNG Limited (PLL) and SOCAR Trading for another three years. Initially signed in 2023, the agreement allows PLL to procure one LNG cargo per month as needed, without financial obligations or take-or-pay commitments. The extension aligns with Pakistan’s strategy for flexible and cost-effective LNG procurement based on seasonal demand.