India Targets $1.7 Billion Revenue from Online Gambling Tax in Fiscal Year 2025

India targets substantial tax revenue from online gambling to fund key initiatives in FY25.

Feb 3, 2024 - 08:04
Feb 3, 2024 - 08:04
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India Targets $1.7 Billion Revenue from Online Gambling Tax in Fiscal Year 2025
India Targets $1.7 Billion Revenue from Online Gambling Tax in Fiscal Year 2025

India is setting its sights on collecting up to 140 billion rupees ($1.7 billion) through goods and services tax (GST) in the upcoming fiscal year, primarily targeting online gambling operators. Revenue Secretary Sanjay Malhotra shared this ambitious goal in an exclusive interview with Reuters on Saturday.

The Indian government made waves last October by imposing a hefty 28% tax on the proceeds amassed by online gaming platforms from their users for each bet placed. This decision rattled the burgeoning $1.5 billion industry, which enjoys substantial backing from global investors. Authorities justified this action citing concerns over the rising tide of addiction associated with online gambling activities.

According to Malhotra, the projected tax revenues for the fiscal year ending on March 31 are estimated to soar to approximately 75 billion rupees, marking a significant increase from the previous year's figure of 16 billion rupees.

During the October-December quarter, the tax generated a substantial sum of 35 billion rupees, indicating a promising start for the fiscal year. However, Malhotra cautioned against drawing premature conclusions about the stability of the industry. He revealed plans for a comprehensive review of the taxation framework for online gambling companies by April, although any potential adjustments to tax rates remain uncertain.

Highlighting the broader tax landscape, Malhotra noted that the government's overall GST collections have averaged around 1.7 trillion rupees per month. Looking ahead, he expressed optimism, anticipating an average monthly collection ranging between 1.80 trillion to 1.85 trillion rupees in the upcoming fiscal year.

Also Read: India Allocates $48 Billion for Food and Fertilizer Subsidies in the Upcoming Year

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