The Indian government is targeting the collection of up to 140 billion rupees ($1.7 billion) in goods and services taxes from online gambling companies during the fiscal year 2025, as revealed by Sanjay Malhotra, the Director General of the Indian Income Tax Department.
This ambitious revenue goal follows the government’s announcement in October of last year, introducing a 28% tax on the revenue generated by online gambling companies from each customer bet. The move, driven by concerns about gambling addiction, took the industry by surprise, impacting the burgeoning $1.5 billion online gambling sector.
Mr. Malhotra disclosed that in the fiscal year ending March 31, the government anticipates collecting approximately 75 billion rupees in taxes from online gambling entities, a substantial increase from the 16 billion rupees recorded in the previous year. The tax yielded 35 billion rupees in revenue for the state during the October-December quarter.
While acknowledging the stability of the industry, Malhotra emphasized that it is premature to draw definitive conclusions. The framework for tax collection from online gambling companies will undergo a review in April, although this doesn’t imply an imminent change in the tax rate.
Mr. Malhotra further revealed that the Indian government currently collects an average of 1.7 trillion rupees in overall goods and services taxes per month. Looking ahead, he stated, “We expect to collect an average of 1.80-1.85 trillion rupees in goods and services taxes per month from the next fiscal year.” The government’s proactive approach to taxing online gambling reflects its commitment to regulating the industry and tapping into potential revenue streams.