The Goa government will write to Union Finance Minister Nirmala Sitharaman urging a reconsideration of the recent decision by the GST council decision to impose a 28 percent tax on the full face value of bets in online gaming, casinos and horse racing.
Goa Industry Minister Mauvin Godinho, the state’s representative on the GST council, expressed concerns about the 'negative impact' of this tax on the industry and its potential consequences for tourism in the coastal state.
"I have already taken up this issue with Chief Minister Pramod Sawant who said he would be writing to the Centre to reconsider the tax. The CM will take up this issue with the Centre and the Finance Minister. It will ultimately go for reconsideration before the GST council," Godinho told reporters.
Stakeholders in the online gaming, casino gaming, and horse racing industries wanted the entire taxation to be done on the gross gambling revenue (GGR) ) instead of the full face value of bets. After the recent decision, many industry experts have also have voiced their concerns on the severe consequences.
Experts said the that decision was a retrograde step that will not only eradicate the entire industry but also result in significant job losses at gaming companies, potentially leading to their closure.
"There is no dispute on the imposition of 28 percent GST but they have decided to impose it on the full face value. That is the only difference," the minister said.
Godinho said this decision will hamper fresh investment in this industry and it will affect the sector.
”Even for Goa, footfalls are bound to decrease. Most of the flights to Goa are full because people come to play in casinos here. This decision is not going to be a very positive thing for the industry,” he added.
The GST Council on Tuesday decided to levy the maximum 28 percent tax on the full face value of bets in online gaming, casinos and horse racing.
According to the Finance Ministry, the effective date for the 28 percent GST levy on online gaming will roll out after amendments to GST law. Currently, services of casinos, horse racing, and online gaming attract 18 percent GST.
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