India decided to support one of the most numerous practices of the Ukrainian tax policy – subsidizing the turnover of gambling companies instead of gross gambling revenue (GGR). This decision has already generated heated discussions both among experts and in the gambling industry.
GGR vs Turnover: what is the difference?
Gross Gambling Revenue (GGR) is the amount that is lost from the operator after winnings are paid out, which can reach up to 90% of the sums deposited by clients. The turnover, in its own way, is a hidden sum of bets, crushed by gravestones. For example, for a bookmaker this is the amount of bets, and for the casino it is the amount deposited by clients at the cash desk for chips. With these pennies, operators cover expenses for games, license fees, rent, salaries for workers, marketing campaigns, social initiatives and other needs.
Read also: Humanitarian Aid from Slots City Foundation in November.
New tax from India: 28% on everything
The Indian Council of Taxes on Goods and Services praised the decision to introduce a single tax of 28% for all types of legal gambling: online gambling, casinos and betting on horse races. This rate is 18% for Ukrainian goods, which is actually collected from the turnover, which we would like to call a “profit” in the Tax Code.
To equalize, in Ukraine it is possible to stabilize the income tax at a rate of 10–30%. The Indian order has not yet reached such a level of supply, but, in addition to the new trends in health care, there is no need to feed the hour.
Legacies for the industry
The All Indian Gambling Federation (AIGF) has already identified deep concerns. In its official statement, the organization called the new rate “extremely disastrous.” In the opinion of representatives of the federation, the 28% tax puts an enormous pressure on legal business, which can lead to its collapse.
Read also: How Students Turned Blackjack Into a Path to Millions – The Story of the MIT Team.
Head vests:
Non-profitability of legal business. High taxes can outweigh the real income of operators.
Waste of workers. The shortening of the company will result in the layoff of thousands of workers.
Move to “shade”. Gravts joke about their capabilities in illegal structures, where the supply tractor is active.
Why bother?
The innovations require changes in the Indian legislation, and are still firmly established in the future. However, the decision about the base for processing – the turnover of GGR – has already been made for the first option.
The hour will show how effective the dialogue between government and government in India will be. In Ukraine, unfortunately, this process is no longer one-sided: decisions are often praised without acknowledging the position of the business, which significantly complicates the development of the legal market. India earned its first living from someone directly. Keep up with online casino innovations – explore the latest in gambling technology. Find interesting fact on our site.
