India: tax hike proposed for online gaming

A group of ministers has proposed a 28 per cent tax on online gaming.

India.- A group of state finance ministers has proposed a goods and services tax (GST) of 28 per cent for online gaming, racecourses, and casinos. Most businesses currently pay 18 per cent on cash collected from each game.

The change would aim to bring online gambling in line with casinos and horse racing. In a similar formula for horse racing, there would be a 28 per cent tax on the entire betting amount and not the winnings.

Lawmakers believe that because the operational costs of the land-based industry are much higher, online casinos and their should pay at least the same amount of tax, if not more.

Committee members told Business Standard.: “The decision to levy tax at 28 per cent on the face value in casinos and online gaming will not affect state revenues as these activities are banned in states.”

See also: Meghalaya found to be most gambling-friendly state in India

Finance minister Nirmala Sitharaman has been looking into ways to adjust the gambling tax in the country and derive greater benefits for the public coffers. 

The Internet and Mobile Association of India (IAMAI) recently asked the GST Council to keep the 18 per cent rate for online gaming in place. The IAMAI stated that any increase in the rates would be detrimental to the industry. 

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