TAX WORTH CRORES WAIVED OFF FOR FORMULA 1, SC ASKS WHY?

Nexus between the governments and the elites or tycoons has always been a cause of concern. This time this nexus involves Mayawati and the Jaypee group (the group which is organising India’s first Formula 1 race)

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August 24, 2022

Nexus between the governments and the elites or tycoons has always been a cause of concern. This time this nexus involves Mayawati and the Jaypee group (the group which is organising India’s first Formula 1 race) when the former waived off the entertainment tax worth crores of rupees for the latter. The Supreme Court on Oct 18 asked the U. P. government as to why it has granted tax exemption to the event that will start from Oct 30 at the Buddh International Circuit in Greater Noida. The petitioner, Mr. Amit Kumar said the tax collected from such events could be judiciously used for various other welfare programmes required in the state.

The petitioner alleged that Formula 1 is a “dangerous and elitist sport” and does not involve any public interest; hence tax exemption should not be given to it. “The waiver has been granted purely due to the fact that the private respondent is close to the political leadership at power in U.P.,” the petitioner alleged. The petitioner further added that the sport is reserved for the very rich and elite of the society.