Aam Aadmi Party’s Goa unit has stated that the Arvind Kejriwal-led Delhi Govt has opposed the 28% GST on only skill-based online gaming, and NOT on offshore casinos as has been reported in local media.
Stating that there is a big difference between online gaming and online gambling, AAP leader Valmiki Naik reiterated that the party has always opposed the undue influence of the casino lobby in Goa and will continue to do so.
“While the newly imposed tax on online gaming was announced together as “28% GST on online gaming, horse-racing, and casinos”, AAP’s opposition was specifically to this high retrospective tax on the skill-based online gaming sector. And since the Pramod Sawant-led BJP Govt which is known to work at the behest of the casino lobby also opposed the same announcement of 28% GST, AAP’s opposition was misconstrued as a statement of support for casinos”, Naik clarified.
Naik enumerated the various differences between online gaming and online gambling, stating the former is skill-based and is a form of entertainment, whereas the latter is based on chance which requires one to risk money in the hope of winning more money.
“There is no risk of financial loss in online gaming, as there is no bet or wager of money as there is in online gambling. Online gaming has almost 40 crore users in India which use it as a form of entertainment”, said Naik.
Naik said AAP’s support for the online gaming industry has nothing to do with gambling or casinos, and stated that party continues to oppose the offshore casinos in Goa which bring with them many social evils such as black money, drugs, prostitution and crime.
Naik explained that AAP’s opposition to the tax was also because of its retrospective nature.
“Online skill-based gaming is a sunrise industry which is attracting foreign investments as well as providing employment to young Indians. Burdening such a sector with the highest GST bracket of 28% is just bad economics. But the worst part is that tax demands have been sent to these companies for back taxes of past 6 years which will destroy this industry. Such knee-jerk and unpredictable taxation decisions by the Modi Govt will affect foreign investor sentiment not just in this sector but also other industries”, Naik added.
AAP Media Cell