Assessing the Impact of 28% GST on Online Gaming
All Things Policy
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The Unintended Consequences of Online Gaming
The Secretary of the concerned Ministry mentioned that this is something which can lead to increase in tax revenues. The assumption here is after this, the tax revenues will be almost 20,000 per month. This kind of defies most of the economic reasoning. Whenever you have a tax imposed on something, the price increases. Now, if the price increases, what will happen? Price and demand, there is this inverse correlation at higher prices demand typically goes down. What might happen is the market can go underground. That is what the report talks about. If the market goes underground, those negative externalities will continue to be there. And they will not even be regulated. It will be difficult to figure
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