In FY25, the government hopes to raise ₹14,000 crore in taxes from internet gambling: Report

In FY25, the government hopes to raise ₹14,000 crore in taxes from internet gambling: Report

In October, the government levied a 28 percent tax on the money that online gambling businesses take from their players for each wager.

Revenue Secretary Sanjay Malhotra told Reuters on Saturday that Indians are anticipating collecting up to ₹140 billion, or ₹14,000 crore ($1.7 billion), in goods and services tax (GST) from online gaming businesses in the next fiscal year.

The government taxed online gambling businesses' earnings for each bet in October, taking a 28% cut from the money they collected from players. This was a blow to the $1.5 billion sector that was just starting out and was supported by international investors. The action was justified by the administration, which cited drug addiction concerns.

According to Malhotra in an interview, the government would raise tax revenue from ₹16 billion to around ₹75 billion in the fiscal year that ends on March 31. He claimed that the October–December quarter brought approximately Rs. 35 billion in tax revenue.

"The industry has stabilized, but it is too early to make conclusive comments," he said. He said that while the tax rates will not be altered, the tax structure for internet gaming enterprises would be examined by April.

Malhotra said, "We are anticipating an average monthly collection ranging from Rs 1.80 trillion to Rs 1.85 trillion from the next fiscal year." The government has collected an average of Rs 1.7 trillion in GST every month.

(82.9990 Indian Rupees = $1)