Government Tax Said to Be Unlikely to Reach Consensus on Taxing Online Gaming in December 1tn4q Technology News

A of state finance ministers has for weeks been deliberating how it should tax online gaming companies, but is yet to submit its report. 5s732f

By Reuters | Updated: 5 December 2022 17:19 IST

Government Tax Said to Be Unlikely to Reach Consensus on Taxing Online Gaming in December

Photo Credit: Pixabay 3u334z

The gaming sector could be worth $7 billion (roughly Rs. 57,000 crore) by 2026

Highlights

Government separately working on federal regulations for gaming sector
These planned regulations will apply to all real-money games
PMO recently overruled a proposal to only regulate games of skill

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A of state finance ministers has yet to submit its report on taxation of the booming online gaming sector that is crucial to a final decision on how the levies should be imposed, a senior government official said on Monday.

The has for weeks been deliberating how it should tax online gaming companies — and whether federal tax should be imposed on only the profits of firms or on the value of the entire pool of money collected from participants.

The is unlikely to reach a consensus this month, the official told reporters in New Delhi.

Government Said to Plan Regulation of All Real-Money Online Games

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 Mobile Premier League, popular for their fantasy cricket games.

Any decision on this in the meeting of the goods and services tax (GST) council on December 17 will be contingent on the availability of the report which has yet to be finalised, the official said.

The government is also separately working on federal regulations for the gaming sector that research firm Redseeer estimates will be worth $7 billion (roughly Rs. 57,000 crore) by 2026, dominated by real-money games.

China Has Resolved Its Youth Game Addiction Problem, Industry Body Claims

Those planned regulations will apply to all real-money games after the prime minister's office overruled a proposal to only regulate games of skill and leave out games of chance, Reuters reported on Sunday.

During the December 17 meeting of the GST council, the of federal and state finance chiefs will also discuss decriminalising the tax laws by way of raising the threshold for prosecution, the official added.

A separate government tasked with the rationalisation of GST rates is also discussing the 18 percent tax levied on health insurance, amid calls seeking a lower rate, said the official.

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