India expects to collect up to 140 billion rupees ($1.7 billion) in GST from online gambling companies next fiscal year, Revenue Secretary Sanjay Malhotra told on Saturday.
Government imposed a 28% tax
In October, the government imposed a 28% tax on the funds that online gaming companies collect from their customers for each bet
Shocking a $1.5 billion industry supported by global investors. The government defended the move, citing addiction concerns.
In an interview, Malhotra stated that the government will collect approximately 75 billion rupees from taxes in the fiscal year ending March 31, up from 16 billion rupees the previous year.
Tax generated of 35 billion rupees
He stated that the tax generated 35 billion rupees during the October-December quarter.
“The industry has stabilised, but it is early to make conclusive remarks,” he said.
A review of the framework to tax online gambling companies will be conducted by April, but that doesn’t mean tax rates would be changed, he said.
The government’s overall GST collections have averaged to 1.7 trillion rupees per month, Malhotra said, adding, “We are expecting average monthly collection of 1.80 trillion to 1.85 trillion rupees from next fiscal” year.
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