Taxing the online gambling industry the same as gambling will stifle growth: Winzo
India’s gambling ecosystem is expected to grow to 10 unicorns and 5 decacorns over the next five years, but a high tax on the entire online gambling industry at the same level as gambling will stifle growth, India said on Friday. Winzo online game company.
The GST Board on Wednesday postponed its decision to levy a 28% tax on casinos, online gambling, horse racing and lotteries pending further consultations with stakeholders.
“We at WinZO believe that India will boast up to 10 unicorns and 5 decacorns in the gaming ecosystem in the next five years alone. To paint the entire online gambling industry with the same brush as gambling by placing it in the same tax slab, i.e. 28% of the current 18%, would have serious implications for the development of this sector,’ Winzo said in a statement. .
A startup becomes a unicorn when its valuation reaches $1 billion, while a company whose valuation exceeds $10 billion is called a decacorn. Winzo said the country is at the epicenter of the exploding global gaming economy, contributes nearly 17% of global mobile game downloads, the most of any country, and is poised to come out on top. as the world’s next gaming superpower. .
The market has operated in a way where a clear distinction exists between gambling or gambling on the one hand and all other forms of online games and sports on the other hand, Winzo said.
”There are over 900 companies in the gaming industry in India, building for tomorrow. Premature overtaxing with the proposed 28% increase would only plunge these start-up companies further into losses rendering the industry unviable,” the statement said.
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