India’s lottery demands assessment

Representatives of the lottery sector in India demanded changes in the current tax project.

India.- The government of India is planning a new tax on lottery sales which would increase 28 percent the tickets’ price. Meanwhile, the All India Federation of Lottery Trade & Allied Industries published a complaint arguing that the fee would jeopardise the lottery sales as it directly affects the players’ economy.

According to Asia Gaming Brief, the local association urged the government to implement the new Goods and Services Tax (GST) on margin revenue in order to reduce the possible price’s increases. The new gaming fee amendment announced by Finance Minister of Maharashtra Sudhir Mungantiwar will take effect on July 1 and lottery taxes will grow from RS 30,000 (US$457) to Rs 100,000 (US$1526).

“GST should only be levied on the operator’s’ margin. The prize money part comes under direct tax (income tax paid by the winner),” stated the All India Federation. Meanwhile, Kerala Finance Minister Thomas Isaac responded: “Kerala’s role in formulating the GST was appreciated and we stood our ground on a few issues and these were accepted. Lottery ticket sales will be only profitable for the state-run lottery as its tax rate has been fixed at 12 per cent, while for other state lotteries, the tax rate has been fixed at 28 per cent. In the coming days talks will be held between the representatives of lottery sellers and agents with regards to the new sharing of the commission.”