Negative Effect of New Tax – India News

You are probably already aware of the fact that the Indian government is planning to introduce a bill that will regulate the entire iGaming industry. For this purpose it is planned to introduce a 28% tax on this activity, which bookmakers earn from users, offering them their online gambling sites. After analyzing several sources in size, it is certainly worth arguing that this can greatly affect online gaming and sports betting in India. The introduction of this new tax can shake the industry and introduce unfavorable outcomes in its further development.

Federal and state finance ministers said they would not distinguish between a “game of skill” and a “game of chance.” Prior to this high-profile bill, bookmakers had ways to get around financial taxes through this distinction. Today, most bookmakers understand that the further settlement of tax deductions will develop along a different vector, and, of course, they immediately responded.

About 45 betting companies joined forces and sent a collective letter to the Prime Minister’s Office and related authorities, in which they attached an appeal to exclude video games from the 28% share of “Online Games”. Let’s hope that the narrative will have weight and a constructive decision will be made that will suit both sides of the dispute. In fact, the requirement of betting companies is logically understandable, because video games do not generate income, since they do not participate in cash bets, and it would be as strange as possible to impose a 28% tax on them. To date, no consensus has been reached, as the government continues to mix all types of the gaming industry into a single whole, which further causes controversy and misunderstandings in the field.

The Indian government is going to regulate the entire iGaming industry.

Reasons for the government’s motivation

On the current situation, the head of the ministry of Sitharaman spoke out, explaining the development of the bill to increase the tax rate by the fact that there is a risk of financial loss and potential dependency in the industry. 

The government does not intend to stop online gambling, casino or (or) horse racing. But in the moment of transparency of gaming activities there are moments that increase the opacity. 

As we can see, these comments did not affect the fact that the storm of emotions and indignation on the part of betting companies has subsided. Let’s hope and expect a clearer position and arguments of objective facts, how the tax burden may not affect the national business in the industry.


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Faraz Gupta

Faraz Gupta has been running his own blog with news about the world of gambling and betting. A professional journalist analyzes the latest developments in the field of casinos and betting, studies in detail the legislation of the industry and gives his readers good advice.