To enhance the growth of the gaming industry in India, tax authorities should align its policies with internationally accepted principles of taxing, said CEO of All India Gaming Federation, Roland Landers, ahead of the Union Budget 2022.
Landers cited data and said that the online gaming industry is growing at an impressive CAGR of 25 – 30 per cent and holds significant potential for overall economic growth, job creation and contribution to the government’s vision of a trillion-dollar digital economy by 2025.
“To enable the industry in realising its peak growth potential, it is imperative that the GST regime for the online gaming industry is kept rational and at par with other technology platforms and services. It is important to highlight that regressive taxation of these emerging sectors may only make the business unsustainable in India,” said Landers.
Landers recommended that the tax authorities should align its policies with internationally accepted principles of taxing the online gaming sector and provide certainty to the industry.
Talking about Crystallizing the GST levy mechanism, Landers added, “The valuation mechanism in levying GST should be clearly outlined to avoid any ambiguities and potential litigations leading to tax demands as the same will adversely impact the business plans, operations, and entry of new players in the industry.”
Finance Minister Nirmala Sitharaman is all set to present the Union Budget for the financial year (FY) 2022-23 on 1 February amidst the ongoing COVID-19 pandemic.
Almost everyone has an eye on the upcoming budget, amid the expectations and financial relief for respective sectors. Also known as the annual financial statement, the union budget is presented by the Centre government every year.