Indian authorities issues notice demanding $12.03 billion in allegedly evaded taxes from online gaming companies

A demand of around $12.03 billion has been issued by Indian regulators over suspected tax evasion on internet gaming companies.

This action is in response to the government’s August 28% tax on the entire amount of money deposited by users to play online games, including gambling.

It should be mentioned that both skill and chance games will be subject to the online gaming tax, which will not be applied retroactively. There are concerns that this tax might negatively impact the Indian startup scene, perhaps resulting in job losses and hurting foreign investments.

According to Siddharth Sharma, Senior Vice President of Business Strategy at Head Digital Works, the industry and its sustainability will be significantly impacted by the higher tax rate on gross gaming value. He pointed out that excessive taxes might hinder company growth and innovation, driving clients to unlicensed gaming and betting establishments that flout local laws.

Original story by: Asia Gaming Brief