Gaming firms in India express concerns on new tax system, says it will affect foreign investments

Over 100 on-line gaming firms in India have expressed concerns over the new tax system that will be imposed on these firms.

In a letter to the finance ministry, these firms declare that the new 28 % tax on on-line gaming firms in India will negatively affect foreign direct investments in the sector.

The letter additional famous that the new tax system will additionally put the $2.5 billion already invested in the sector in danger.

In the letter dated July 14, gaming firms in India additionally urged the finance ministry to rethink the transfer and added that it might create unfavourable repercussions in jobs and investments in the sector.

It ought to be famous that prime gaming firms Tiger Global and Peak XV, beforehand generally known as Sequoia Capital India have just lately invested in Indian cellular gaming firms together with Dream11 and Mobile Premier League.

Recently, in an unique interview with Reuters, Federal Revenue Secretary Sanjay Malhotra stated that the new tax system will result in constructive impacts each socially and economically.

He additional famous that a number of Indian ministers think about the bets on online gamingplatforms a “social evil”.

Interestingly, over the last season of the Indian Premier League, revenues from fantasy leagues rose 24 % yearly to hit $342 million, in line with Redseer consultancy.

The consultancy added that 2023’s version of IPL witnessed over 61 million customers taking part, primarily pushed by the much less quantity (Rs.8) required to play the sport.