Centre aims to collect Rs 14,000 crore from online gambling tax in FY25

PTI, Feb 3, 2024, 8:32 PM IST

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New Delhi: The Centre expects to collect up to Rs 14,000 crore in goods and services tax (GST) next financial year by taxing online gambling companies, Revenue Secretary Sanjay Malhotra told Reuters on Saturday.

The government in October imposed a 28 per cent tax on funds that online gaming companies collect from their customers for every bet, shocking a nascent Rs 12,500 crore industry that is backed by global investors. The government had defended the move, citing concerns about addiction.

In the fiscal year that ends on March 31, the government will collect about Rs 7,500 crore from the tax, Malhotra said in an interview, up from Rs 1,600 crore the previous year.

The tax generated Rs 3,500 crore in the October-December quarter, he said.

“The industry has stabilised, but it is early to make conclusive remarks,” he said. A review of the framework to tax online gambling companies will be conducted by April, but that doesn’t mean tax rates would be changed, he said.

The government’s overall GST collections have averaged to Rs 1.70 lakh crore per month, Malhotra said, adding, “We are expecting average monthly collection of Rs 1.80 lakh crore to 1.85 lakh crore from next fiscal” year.