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Indian govt imposes 28% tax on online gaming
Indian government's 28% tax imposes a strain on the online gaming industry.


Delhi: The Indian government has taken a significant step by imposing a 28 percent tax on the earnings of online gaming companies.
The move follows mounting concerns regarding potential addiction and financial losses among gamers, despite the presence of Indian celebrities endorsing gaming apps.
This growth has attracted international investors, including US investment firm Tiger Global, which has supported Indian gaming startup Dream11, a prominent sponsor of the Indian national cricket team.
The decision to levy the tax was made by Indian Finance Minister Nirmala Sitharaman, who chairs the Goods and Services Tax Council consisting of state finance ministers.
Sitharaman affirmed that the decision came after extensive discussions on the matter.
Aditya Shah, the Chief Operating Officer of the gaming app India Play, highlighted that the 28% tax rate would pose significant challenges for the gaming industry.
Roland Landers, CEO of the All India Gaming Federation, criticized the decision, deeming it "unconstitutional and unreasonable."
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