India’s government says it will impose a 28 percent tax on funds that online gaming companies collect from their customers in a setback to the $1.5bn industry.
Gaming apps are often endorsed by sporting heroes in India, where cricket is a national passion, but concerns have mounted over possible addiction and financial losses among the gamers.
The sector has been growing at an annual compounded rate of 28 percent to 30 percent and has also drawn international investors. United States investment firm Tiger Global has backed Indian gaming start-up Dream11, the lead sponsor of India’s national cricket team.
On Tuesday, Indian Finance Minister Nirmala Sitharaman, who chairs the goods and services tax council, made up of state finance ministers, said the decision to tax online gaming was reached after extensive discussions.
