Ashneer Grover Slams Latest Tax Policy That Hit His Fantasy Cricket Company Badly: There was a huge wave of various emotions flowing among the people of India, and also outside who are affected by it, when the Union Finance Minister Nirmala Sitharaman announced Tuesday that the Goods and Services Tax (GST) Council has agreed to increase tax on online gaming, casinos, and horse racing to 28 percent.
While a section of people in the country praised this higher GST rate in India, saying that this move is also in consideration to the morality of human beings and this would save some families from going bankrupt, another section of people slammed this move for various reasons.
In the section that is not happy with this increased GST rate on online and fantasy gaming companies is BharatPe co-founder Ashneer Grover who opined that this high GST rate could kill the fantasy gaming sector in India and also would hurt India’s economy as foreign investors will pull out from investing and partnering with Indian fantasy companies.
Ashneer Grover Slams Latest Tax Policy
Ashneer Grover himself entered the fantasy gaming sector this year with his company CricPe, and while he made some sound points lamenting this move from the Indian government, it can also be felt that there was much emotions into his opinions as his own will also take a hit badly.
“RIP – Real money gaming industry in India. If the govt is thinking people will put in ₹100 to play on ₹72 pot entry (28% Gross GST); and if they win ₹54 (after platform fees)- they will pay 30% TDS on that – for which they will get free swimming pool in their living room come the first monsoon – not happening ! It was good fun being part of the fantasy gaming industry – which stands murdered now. $10 Bn down the drain in this monsoon. Time for startups Founders to enter politics and be represented – or this is going to be spate industry after industry,” Ashneer Grover tweeted.
Ashneer Grover points out MS Dhoni, Virat Kohli have also endorsed fantasy companies
In another tweet, he pointed out that Indian cricketing superstars MS Dhoni, Virat Kohli, and Sourav Ganguly have endorsed the fantasy gaming platforms. He asked why nobody questioned their morality then, and it is now the government wants to teach some morality to Indians.
He said: “You got billions in from foreign investors as FDI. Celebrated FDI inflow ! Now the same investors will apply regulatory risk discount to India and funds will dry up. Not only for online games – but across sectors. Across startups.
“Also why judgement on online gaming now ? Everyone from @imVkohli to @msdhoni to @SGanguly99 have endorsed online gaming. Why was India public / Govt / BCCI not outraged by all cricketers endorsing ? Why was BCCI allowed to take @Dream11 as title sponsor ? Sab Doglapan hai – Tech founders are dispensable – that’s the only truth. In future all Tech companies will be based in Dubai / Singapore. As an operator Indian regulatory risk makes no sense to put one’s own effort – forget raising external capital for it!”
