At the end of May, a panel of ministers decided to raise the online gambling taxes from 18% to 28%. Why has this decision been made and what does it mean for you and your gambling activities?
Gambling has grown in popularity in India for many years now. Online gambling in particular has taken India by storm. The Indian gaming sector is growing at 30% annually with more than 400 million users across the country. ufa191
The online gambling industry is fast-growing, making it the most profitable industry within entertainment. Furthermore, the industry is likely to become even more profitable in the future. This is perhaps the reason why the Indian government is raising taxes on the online gambling industry. Online casinos have long lobbied to keep the taxes below 18%, arguing that the gambling industry will not be viable if the taxes are raised. However, others believe the industry will continue to grow despite the tax raise. One thing is certain: it is all a question of finances, which you can read more about here. The Indian government seeks to benefit from the growing success of the online gambling industry, but the prospect of getting a portion of the profits made by online casinos is not the only reason why the Indian government has decided to raise the taxes.
As better and faster internet connection is becoming available to people all across India, so has the access to online gambling opportunities. This gives the online gambling industry an advantage over other companies within the gambling industry. Land-based casinos, for example, are struggling to keep up with the fast-paced online casinos. Additionally, running a land-based casino is more costly. This has led some people to believe that taxes should be raised, thereby compensating for this inequality.
It is uncertain whether the increased 28 per cent tax on gambling will make enough of a difference to turn things around for the land-based casinos. Online gambling is still more popular than land-based casinos, and the rise in taxes is not likely to change this fact.
The tax raise will affect the gambling industry, but will it affect you as a player? The short answer is no. The long answer is that the more you win the more you will be affected by the tax raise. The casinos will pay taxes on the amount paid at every entry point. For example, when a customer buys chips. This means that casinos don’t have to pay taxes on every transaction. For you, as a player, it will not make a huge difference. Your casino winnings are considered to be a part of your annual income. This means that you will only be affected by the raised taxes if you are a very successful gambler. However, now that the taxes have been raised it is more important than ever that you choose your online casino wisely. Some casinos have better bonuses to offer than others. You can try playing online casino here. By choosing the right casino, you can make the tax raise less noticeable.