A panel of state finance ministers has yet to submit a report on taxing the booming online gaming sector, which is crucial to the final decision on how to impose the tax, an important senior government officials said Monday.
For weeks, the panel has pondered how to tax online gaming companies — and whether the federal tax should apply only to the profits of the companies or to the value of the entire amount. proceeds from the participants.
The official told reporters in New Delhi that the panel is unlikely to reach a consensus this month.
Real money online games have become hugely popular in the country, prompting foreign investors like Tiger Global and Sequoia Capital to back local gaming startups. Dream11 and Mobile Premier Leaguepopular for their fantasy cricket games.
The official said any decision on the matter at the upcoming meeting of the goods and services tax (GST) board on December 17 will depend on the availability of the report which has yet to be finalized. benevolent.
The government is also working separately on federal regulations for the gaming sector, which research firm Redseeer estimates will be worth $7 billion (about Rs 57,000) by 2026, mainly eating games. real money.
Those planned regulations will apply to all real money games after the prime minister’s office rejected a proposal to regulate only games of skill and eliminate games of chance, Reuters reported. on Sunday.
At the December 17 meeting of the GST board, the federal and state boards of finance directors will also discuss legalizing the tax law by raising the prosecution threshold, the official added.
A separate government panel tasked with streamlining GST rates is also discussing an 18 percent tax on health insurance, amid calls to seek a lower rate, important this office said.
© Thomson Reuters 2022