Karnataka’s minister for Information Technology and Biotechnology (IT&BT) Priyank Kharge said that the 28 % tax slab on online gaming industry would damper Foreign Direct Investments (FDI) and start ups in the country. He also stressed that the move could even impact India’s $1 trillion digital economy target by 2025.
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Slamming the Goods and Services Tax (GST) council, Priyank on Thursday tweeted, “Although I personally oppose all forms of gambling, implementing a flat 28% Goods and Services Tax (GST) on the gaming industry has significant negative implications. The tax applies uniformly, regardless of whether a game relies on skill or chance.”
He further expressed that the GST council should have made a mindful decision regarding the taxation on online gaming industry. “It would have been beneficial to consider this decision more thoroughly, as it could hinder the achievement of the $1 trillion digital economy target by 2025. Additionally, the Indian gaming startup ecosystem, which has attracted $2.5 billion in investments, may suffer from reduced prospects of foreign direct investment due to this taxation,” the minister added.
On Tuesday, Union Finance Minister Nirmala Sitharaman in New Delhi said that the GST council has decided to levy 28% GST on online gaming, horse racing and casinos at full value. The decision was made after the 50th meeting of the council.
{{/usCountry}}On Tuesday, Union Finance Minister Nirmala Sitharaman in New Delhi said that the GST council has decided to levy 28% GST on online gaming, horse racing and casinos at full value. The decision was made after the 50th meeting of the council.
{{/usCountry}}The finance minister also said that a discussion was held on if an online game is skill-based, or chance based. “We are not looking at a game if it is skill-based, chance-based or both, we are purely looking at the value it generates which can be taxed,” the union minister said in the national capital.