The government also needs to think about it. Once of the reason why the ICC was not very keen to allow India to host the tournament was due to the fact that the tax rate is too high there. Most of the countries grant tax exemption to global sporting events, but India never does that. The government needs to realize that there is a lot of indirect benefit from hosting such tournaments, and they can generate a lot of jobs and improve the tourist potential. And also, the generation of indirect taxes also needs to be taken in to account.
What can you expect from a third world country? Government wants a piece of everything in India. They say it is for the benefits of the citizen. To an extent it is true, but not all. The best they should do is reduced the tax. I agree that 43 percent is a big number, they should be realistic and think about other benefits that tournament like this bring to the country.
I thought that India could not host the tournament at the moment because of the pandemic situation there. I don't think any country will refuse to host the tournament in their own country because of more taxes etc. The monetary benefits which comes with hosting, can take over all the taxes.
Whenever such big sporting events are organized in a country the biggest earning comes through tourism but looking at the present pandemic situation that would be negligible. Another benefit is indirect job creation but I cannot comment on that considering the situation. The only way Indian government can make some money is I think through taxes but the percentage is huge. They should think about the future and not the present situation.