India Targets US$1.7 Billion in Online Gambling Tax Revenue for FY25
Indian government targets 140 billion rupees (US$1.7 billion) in GST from online gambling companies in the next financial year. The 28% tax on funds collected by online gaming companies has caused controversy in the industry. The tax is expected to generate 75 billion rupees in the current fiscal year, up from 16 billion rupees the previous year.
The Indian government is setting its sights on collecting up to 140 billion rupees (US$1.7 billion) in goods and services tax (GST) from online gambling companies in the next financial year, according to Revenue Secretary Sanjay Malhotra. This move comes after the government imposed a 28% tax on funds collected by online gaming companies from their customers, causing shockwaves in the US$1.5 billion industry.
The decision to tax online gambling companies was met with surprise and concern from industry players and global investors. However, the government defended its actions by citing worries about addiction. Despite the initial backlash, the tax is expected to generate significant revenue for the government.
In the current fiscal year, which ends on March 31, the government is projected to collect around 75 billion rupees from the online gambling tax, a substantial increase from the previous year's collection of 16 billion rupees. The tax has already generated 35 billion rupees in the October-December quarter alone.
While the industry has stabilized to some extent, Malhotra emphasized that it is still too early to draw definitive conclusions. A review of the tax framework for online gambling companies will be conducted by April, but this does not necessarily mean that tax rates will be altered.
Looking at the bigger picture, Malhotra stated that the government's overall GST collections have averaged around 1.7 trillion rupees per month. He further added that they are expecting an average monthly collection of 1.80 trillion to 1.85 trillion rupees in the next fiscal year.
Indian government targets 140 billion rupees (US$1.7 billion) in GST from online gambling companies in the next financial year.
The 28% tax on funds collected by online gaming companies has caused controversy in the industry.
The tax is expected to generate 75 billion rupees in the current fiscal year, up from 16 billion rupees the previous year.
Source: REUTERS