India Targets $1.7 Billion Revenue from Online Gambling Tax in Fiscal Year 2025
India anticipates gathering around 140 billion rupees ($1.7 billion) in goods and services tax (GST) in the upcoming fiscal year through the taxation of online gambling entities, as stated by Revenue Secretary Sanjay Malhotra to Reuters on Saturday.
In October, the government imposed a 28% tax on the funds collected by online gaming companies from their customers for each bet, impacting a burgeoning $1.5 billion industry with global investor support. The government defended the decision, citing concerns related to addiction. Malhotra mentioned that in the current fiscal year ending on March 31, the government is expected to collect approximately 75 billion rupees from this tax, a significant increase from the previous year’s 16 billion rupees. The tax generated 35 billion rupees in the October-December quarter.
While acknowledging that the industry has stabilized, Malhotra emphasized that it is premature to draw definitive conclusions. A review of the framework for taxing online gambling companies is scheduled for April, although he clarified that this doesn’t necessarily imply changes to the tax rates.
Malhotra also provided insights into the broader GST collections, noting an average monthly collection of 1.7 trillion rupees and expressing expectations for an increase to 1.80 trillion to 1.85 trillion rupees in the next fiscal year.
Also Read, Iraqi Prime Minister’s Office Reports 16 Casualties, Including Civilians, in US Airstrikes
