The Goods and Services Tax (GST) Council in India has decided to maintain a 28% tax rate on online gambling and casinos after a thorough six-month review period. The decision was announced by Finance Minister Nirmala Sitharaman during a recent meeting of the council.
The decision to keep the tax rate at 28% comes as a disappointment to many in the industry who were hoping for a reduction in the tax burden on online gambling and casinos. Industry experts have argued that the high tax rate is hindering the growth of the sector and making it difficult for operators to compete with illegal gambling sites.
Despite calls for a tax cut, the GST Council has decided to retain the 28% rate due to concerns about the social impact of gambling and the potential for increased addiction rates. The council has also expressed concerns about the potential for money laundering and other illegal activities associated with online gambling.
In a statement, Finance Minister Nirmala Sitharaman said, “While we understand the concerns of the industry, we also have to consider the negative social impact of gambling and the potential for criminal activities. We believe that maintaining the 28% tax rate is necessary to strike a balance between revenue generation and social responsibility.”
The decision has been met with mixed reactions from industry stakeholders. Some have praised the council for taking a cautious approach to regulating online gambling, while others have criticized the decision for hindering the growth of the sector.
Despite the ongoing debate over the tax rate, online gambling and casinos continue to be a lucrative business in India. The sector has seen significant growth in recent years, driven by the increasing popularity of online betting and gaming platforms.
Industry analysts expect the sector to continue to grow in the coming years, as more Indians turn to online gambling as a form of entertainment. However, the debate over the tax rate is likely to continue as operators and regulators seek to find a balance between promoting industry growth and ensuring responsible gambling practices.