The Indian government is ready to implement a 28 % gambling tax in all of India. What consequences will this have for the gambling industry, and how will it affect you as a gambler?
Gambling is not just fun and games. It is also a livelihood for many people. It is a business that seeks to grow and thrive like any other business. However, the conditions for the gambling industry tend to be different from the conditions other businesses must comply with. The increased tax is just the latest example. But what exactly is a gambling tax rate?
What is a gambling tax rate?
Gambling taxes are not a new thing. Usually, whenever you win at the casino and the casino makes a large transaction, you will have to pay a share of your winnings in taxes. This is the tax rate that is relevant to you. However, you are not the only one paying taxes. Like any other business, the casino must pay taxes to the state based on its revenue. These are taxes that are now increasing, causing changes in the gambling industry.
How will it affect the gambling industry
A group of state finance ministers have proposed a flat 28 % services and goods tax. The taxes will be imposed on the face value or bet amount and not on the total transaction value, which includes the prize money and the net commission. The Indian gambling industry is opposing the proposed 28 % gambling tax. Before, the tax rate was 18 %, so the increased tax rate will be a drastic change for the gambling industry, some fear that the gambling industry will not be viable if the tax increase is imposed. This will cause 45.000 people to lose their jobs and is therefore not an option.
Will the new gambling tax affect you?
Yes and no. In the short term, it is not going to affect you. Online casino for Indian users will continue as it did before. You will not feel the repercussions of the increased taxes. You can go on playing without feeling a difference at all. However, if the higher taxes put the casino industry under a strain, you might notice a difference in the future. The new conditions might set the gambling industry in degrowth, causing the industry to change the casino games that you are playing. How exactly this will play out is difficult to predict, but change is surely coming.
We have not seen the last of it yetÂ
Although it may seem that there is nothing left to be done but to accept the new conditions, things might be looking up in the future. Gambling laws and taxes are not set in stone. Change is possible. Learn more about Indian policies here and keep up with the latest changes in the gambling tax rate. Perhaps the gambling industry will be successful in revoking the increased tax rate.
samanvya 
varsha