India's 'online game indirect tax' expanded by 28%... Game industry, keep an eye out

The Indian government is pushing ahead with a plan to raise the indirect tax on online games from 18% to 28%.

Indian Finance Minister Nirmala Sitharaman announced this at the 50th GST (Goods and Service Tax) Council meeting held on the 11th. The bill will be drafted and implemented within the next few weeks. In addition, regarding the indirect tax increase, the Indian government mentioned that it was a decision to prevent game addiction among its youth.

However, it is pointed out that the scope of 'online games' mentioned by the Indian government is still ambiguous.

The Indian government described this tax increase as 'online games', but only explained casino-like games such as cash betting. “It was expressed that online games are subject to tax based on the total amount of bets. Accordingly, an analysis is coming out that general games may not be included in this indirect tax increase.

In fact, there are many platforms that 강남야구장 match sports wins, draws, and losses, such as cricket, in service. As a result, the local game industry is in an atmosphere of immediate opposition to the Indian government's tax increase, but closely watching the government's guidelines and the scope of online games.

If general games are included in this tax increase, it is predicted that the brakes will be put on the fast-growing Indian game industry. Market research firm Statista also estimated the size of the Indian game market at 135 billion rupees (KRW 2 trillion) by 2022, and predicted that it would grow to 231 billion rupees (3.59 trillion won) by 2025.

Among domestic game companies, Krafton is the most active in targeting the Indian market.

In 2021, Krafton launched 'BGMI (Battle Ground Mobile India)', which localized 'Battle Ground Mobile' for the Indian market, and ranked first in sales in the local app market. In July of last year, it was temporarily blocked due to a border and diplomatic dispute between the Indian and Chinese governments, but it resumed service in May and is still gaining great popularity.

An here industry official said, "In the Indian market, the word 'online game' often refers to casino-type games, so the Indian government's plan this time seems to be in the same context." However, it is necessary to check the detailed Indian government guidelines and implementation. I think I can know for sure," he said.

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