The Indian government anticipates collecting approximately INR 140 billion ($1.7 billion) in goods and services tax (GST) from online gambling companies in the upcoming financial year.
The figure was revealed by Indian Revenue Secretary Sanjay Malhotra and reported by Reuters. As of October of last year, a 28 percent tax has been imposed by the government on funds collected by online gaming companies from their customers for each bet. The decision stirred controversy and was seen as a setback for the booming market by some, but authorities justified the move by expressing concerns about addiction issues associated with online gambling in India.
In an interview, Malhotra revealed that in the current fiscal year ending on March 31, the government is expected to collect approximately INR 75 billion ($903.6 million) through GST from online gambling companies. This marks a substantial increase from the INR 16 billion ($192.7 million) collected in the previous year, with the tax generating INR 35 billion ($421.6 million) in the October-December quarter alone.
The Revenue Secretary also stated that a comprehensive review of the framework for taxing online gambling companies is scheduled for April, clarifying that this review does not necessarily imply changes in tax rates.
