India revenue secretary says no need to consult gaming industry on tax (updated)

Delta

12/07/2023 13:15

(Adds details on the government decision, industry reaction and
 background from paragraph 2)
    By Tanvi Mehta and Nikunj Ohri
       NEW DELHI, July 12 (Reuters) - India's decision to
impose a 28% tax on funds that online gaming companies collect
from their customers, will not need further consultation and an
early review is unlikely, the country's revenue secretary told
local television channels on Wednesday. 
    The government's decision, announced late on Tuesday,
created an uproar in the $1.5 billion industry, with shares of
casino operator Delta Corp  DELT.NS  and other online gaming
firms plunging in Wednesday trade. 
    Revenue Secretary Sanjay Malhotra told local television
channels that there was no need to consult the gaming industry
and amendments to enable the tax will be brought in the monsoon
session of Parliament. India's monsoon session begins later this
month. 
    "The GST Council was unanimous (in its decision)... I am not
the one to take this decision, but I don't think there is any
chance of a review so early," Malhotra told CNBC-TV 18. 
    Although the government said the decision was not intended
to hurt the sector, industry experts and representatives fear it
could sap their earnings and lead to a loss of customers.
    Maharishi Chattopadhyay, an avid gamer and cofounder of
artificial intelligence platform Beatfantasy which helps fantasy
sports players to build their teams, said the risk was "too
much". 
    "I'd rather invest my capital in mutual funds or something
like that. Knowing how much money I made in fantasy last year,
to see this ending is going to be difficult to digest."

 (Reporting by Tanvi Mehta and Nikunj Ohri, additional reporting
by Shivangi Acharya, editing by Christina Fincher and Emelia
Sithole-Matarise)
 ((tanvi.mehta@thomsonreuters.com; https://twitter.com/TanviMehta710;))