NEW DELHI (AP) — India is working on removing tax hurdles to ease Formula 1’s return, Sports Minister Mansukh Mandaviya said on Monday.
Taxes plagued the series’ term in India from 2011-13.
“It will take another six months to work out the modalities,” Mandaviya said. “The government will help in getting tax relaxations that had become a bone of contention so that it is a viable venture for the organizers.
“Given the global situation due to the ongoing Iran war, India is being seen as a safe and viable venue for sporting events, including F1. We plan to have a MotoGP event before F1 returns. The Federation of Motor Sports Club of India is in talks with Formula 1 right now — we will be facilitators.”
All three Indian Grands Prix at Buddh International Circuit (BIC) on the outskirts of New Delhi were won by Sebastian Vettel.
However, organizer Jaypee Sports Group had money issues from the outset and F1 left after the 2013 race. A key point of contention was the state government taxing F1 as entertainment and not sport, and duties levied on teams’ freight was a significant dampener as well.
The federal government is keen to remove any such obstacles.
“If the entertainment tax cannot be altogether repealed, we will try to ensure that reimbursements are provided to incentivize the project for the organizers,” Mandaviya said. “Discussions are ongoing on the issue – it is an inter-ministerial matter and we are trying our best to make it attractive for F1.”
The BIC was a favorite among the drivers for its fast corners and flowing design. Seven-time world champion Lewis Hamilton has expressed his desire for F1’s return to India.
F1 is broadcast in India via digital sports platform FanCode, boasting a strong fan base of 79 million and growing. The races are broadcast in English as well as in local languages Hindi and Tamil.
It costs about $50 million-$70 million in hosting fees for a grand prix. India’s richest business conglomerate Adani Group is exploring opportunities to acquire the BIC and adjoining Jaypee Group businesses, and could spur the movement to bring F1 back to India.
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