• No taxes on ICC revenue, subsidiaries or non-native delegates.
• Exceptions do not cover VAT or federal excise duty, says ECC.
• Says exception was a prerequisite for acquiring Event’s Hosting rights.

Islamabad: The Cabinet’s Economic Coordination (ECC) on Thursday approved exceptions to International Cricket Council (ICC) in connection with the ICC Champions Trophy 2025.

The committee was considering the summary of the revenue department. These exceptions are in line with international best practices to host global sporting events, said a release issued here.

The Cabinet’s Economic Coordination (ECC) met today under the presidency of the Minister of Finance and the revenue, Senator Muhammad Aurangzeb, in the Finance Division, Islamabad.

The meeting attended the Minister of Oil, Musadik Masood Malik; The Minister of Industries and Production, Rana Tanveer Hussain; The President of FBR; The President of SECP; Federal Secretaries; and senior officers from concerned ministries and departments.

According to the standardized hosting rights agreement between ICC and Pakistan, taxes or deductions will be applied to ICC revenue, its subsidiaries, associates, officials and non-resident delegates. However, Pakistani residents, including Pakistan Cricket Board (PCB), will remain subject to income tax on their earnings from the tournament. There will be no exceptions to VAT and Federal Excise Tax (Fed).

The tax exemption is not expected to result in a loss of income as it was a prerequisite for securing the hosting rights of the tournament.

The committee considered important financial affairs and approved key decisions.

The committee also discussed the summary of the Ministry of National Food Safety and research on the abolition of the ban on commercial exports of sheep and goats to Kuwait, but exposed the agenda for further clarification and due diligence.

A technical supplementary grant (TSG) of Rs. 6,859 billion was approved in favor of the Ministry of Energy (Power Division) for development costs in the current financial year (2024-25).

Based on the summary of the petroleum division, ECC also approved the extension of the LNG framework agreement between Pakistan LNG Limited (PLL) and Socar trade for another three years. Originally signed in 2023, the agreement allows the PLL to acquire an LNG load per Month, when necessary, without financial obligations or take-or-pay obligations.

The extension matches Pakistan’s strategy for flexible LNG purchases based on seasonal demand, ensuring cost-effective energy solutions.