India's Delta Corp falls to near three-year low on second tax blow in two months

Delta

16/10/2023 06:22

BENGALURU, Oct 16 (Reuters) - Shares of India's Delta
Corp  DELT.NS  fell to a near three-year low on Monday, after
the casino operator said its unit received an additional tax
shortfall notice to pay 63.84 billion rupees ($766.8 million). 
        This compares to the company's third-quarter net revenue
of 2.71 billion that it 
    reported
     last week and a notice to pay 
    tax arrears
     of 111.40 billion rupees last month.
  
    Delta shares fell 10% to their lowest since November 2020
following the news, after the company lost roughly 40% of its
market share this year.
    In July, the country's Goods and Services Tax (GST) council
decided to impose a 28% indirect tax on money collected by
gaming companies.  
    While global investors have urged Indian Prime Minister
Narendra Modi to review the 28% gaming tax, citing a setback to
prospective investments of about $4 billion, the country's
revenue secretary had said there was no need to rethink the tax.
    
($1 = 83.2575 Indian rupees)

    

 (Reporting by Kashish Tandon in Bengaluru; Editing by Sonia
Cheema)
 ((Kashish.Tandon@thomsonreuters.com;))