India aims to amass up to $1.7 billion in tax revenue from online gambling platforms during the forthcoming fiscal year.
According to Revenue Secretary Sanjay Malhotra, India anticipates collecting approximately 140 billion rupees ($1.7 billion) in goods and services tax (GST) in the next financial year through the taxation of online gambling companies. This move follows the government’s imposition of a 28% tax on funds amassed by online gaming companies from their customers for each bet in October. This decision, affecting a burgeoning $1.5 billion industry with global investor support, was justified by the government due to concerns about addiction.
In an interview, Malhotra disclosed that the government is expected to collect about 75 billion rupees from this tax in the fiscal year ending on March 31, a significant increase from the previous year’s 16 billion rupees.
The tax has generated 35 billion rupees in the October-December quarter, signaling a stabilized industry, though it is too early to draw definitive conclusions. While a review of the framework for taxing online gambling companies is scheduled for April, it does not necessarily imply changes in tax rates.
Malhotra provided insight into the government’s overall GST collections, averaging 1.7 trillion rupees per month. He added that they anticipate an average monthly collection ranging from 1.80 trillion to 1.85 trillion rupees in the next fiscal year.
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