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Several global and Indian investors, including Tiger Global, DST Global, Peak XV, Steadview Capital, and Kotak Private Equity, have urged India’s Prime Minister Narendra Modi to reconsider the recently announced taxation on online gaming. They argue that the decision of the 50th GST Council has unintended consequences and equates legitimate online skill gaming with gambling.
The investors have written a letter to Prime Minister Modi expressing their concerns about the impact of the new tax on the online gaming industry. They believe that the taxation will discourage investment in the sector and hinder its growth potential.
The 50th GST Council, which is responsible for making decisions on tax rates and policies, recently announced that online gaming platforms would be subject to an 18% tax. This decision has sparked controversy and raised concerns among investors and industry players.
The investors argue that online skill gaming is a legitimate industry that requires skill and strategy, unlike gambling, which is based on chance. They believe that taxing online gaming at the same rate as gambling is unfair and will discourage players from participating in skill-based games.
The letter also highlights the potential negative impact on job creation and revenue generation in the online gaming sector. The investors argue that the industry has the potential to create thousands of jobs and contribute significantly to the country’s economy. However, the new tax policy could hinder its growth and discourage investment in the sector.
The investors have requested Prime Minister Modi to reconsider the taxation on online gaming and create a separate category for skill-based games. They believe that a separate tax rate for skill gaming would be more appropriate and fair, considering the differences between skill-based games and gambling.
Top things to Know
– Global and Indian investors, including Tiger Global, DST Global, Peak XV, Steadview Capital, and Kotak Private Equity, have written a letter to India’s Prime Minister Narendra Modi urging him to reconsider the recently announced taxation on online gaming.
– The investors argue that the decision of the 50th GST Council to tax online gaming at 18% has unintended consequences and equates legitimate online skill gaming with gambling.
– They believe that online skill gaming requires skill and strategy, unlike gambling, which is based on chance.
– The investors argue that taxing online gaming at the same rate as gambling is unfair and will discourage investment in the sector.
– They highlight the potential negative impact on job creation and revenue generation in the online gaming sector.
– The investors have requested Prime Minister Modi to create a separate category for skill-based games and apply a separate tax rate that reflects the differences between skill gaming and gambling.
Original article: https://techcrunch.com/2023/07/20/high-profile-investors-ask-india-pm-modi-to-reconsider-tax-on-online-gaming/
