After the interim budget in February 2024, Finance Minister Nirmala Sitharaman is all set to present the Union Budget 2024 of the NDA government. The budget session, scheduled to run from July 22 to August 14, has generated significant expectations across various sectors for notable policy changes and financial relief.
Among various sectors, India’s Online Gaming sector is looking for progressive taxation clarity, which will boost industry growth.
In 2023, the GST Council, led by Nirmala Sitharaman, announced its decision to impose a 28% Goods and Services Tax on online gaming. The law came into effect on October 1, 2023. Under the new regulations, a uniform 28% tax will be applied on the full value of bets placed in online games, irrespective of whether they are games of skill or chance.
Roland Landers, Chief Executive Officer of the All India Gaming Federation said, “To make India a game development hub and bring ‘Make in India’ games to the world, we look forward to substantial budgetary allocation under the AVGC fund, in line with the recommendations of the AVGC Task Force.”
Landers highlighted the need for a budgetary allocation under the Animation, Visual Effects, Gaming, and Comic (AVGC) fund, which will help the needy. He further commented on the need to institute and promote skill-building and educational programs to nurture the next generation of game developers and professionals. Additionally, he is anticipating a long-term clarity and progressive taxation regime for the skill gaming industry.
“Clarity on the Goods and Services Tax will help drive the next phase of growth, provide a conducive business environment, and revive investor confidence in the online gaming sector. These moves will make gaming a cornerstone of Digital India and act as a catalyst for India to achieve its goal of a trillion-dollar digital economy,” he added.
Despite setbacks, analysts predict that the Indian gaming industry is on track to reach $8.92 billion in the coming years. Keep following PokerProNews for the latest updates from gaming.
