Priyank Kharge, the Minister of Information Technology and Biotechnology (IT&BT) for Karnataka, claimed that the country’s FDI and startup activity would be hampered by the 28% tax rate on the online gaming sector. He emphasised that the action might even have an impact on India’s goal of a $1 trillion digital economy by 2025.
Priyank on Thursday tweeted, slamming the Goods and Services Tax (GST) council, “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 added that the GST council should have taken careful consideration when deciding how to tax the online gaming sector.
“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.
Nirmala Sitharaman, the Union Finance Minister, announced on Tuesday in New Delhi that the GST council had decided to impose a 28% GST on all forms of online gaming, horse racing, and casinos. The decision was made following the 50th meeting of the council.
Source: Hindustan Times