Shulou(Shulou.com)11/24 Report--

CTOnews.com, July 11 (Reuters)-an Indian state finance minister said the country has decided to impose an indirect tax on the turnover of online game companies, which analysts say will deal a major blow to the country's $1.5 billion gaming industry. (CTOnews.com Note: about 10.845 billion yuan).

▲ source Pixabay India goods and Services tax Committee is composed of state finance ministers, chaired by the federal finance minister. The committee earlier set up a group to study taxes on casinos, horse racing and online betting.

However, the committee has been unable to decide whether the tax will be levied on the face value of bets, total gambling revenues or platform fees. As a result, the committee finally issued this non-differential taxation resolution.

Sudhir Mungantiwar, finance minister of the Indian state of Maharashtra, said the new rules would not tax online gaming companies based on whether the game was based on player skills or pure luck.

Foreign investors such as Tiger Global and Sequoia Capital have invested in Indian game start-ups such as Dream11 and Mobile Premier League, which are popular with investors for launching cricket games that are popular with Indians.

Roland Landers, chief executive of the Indian Gaming Federation, said: "this means that the provisions of the goods and Services tax will apply to total revenue and the total bonus pool, which we consider to be unconstitutional, unreasonable and shocking."

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