Lottery Prices to Rise Following Government’s VAT Increase
THIRUVANANTHAPURAM, India — The price of six weekly lotteries will be increased from Rs. 30 to Rs. 40. The price of Karunya lottery, priced at Rs. 50, will be brought down to Rs. 40. It has also been decided to modify the price structure. This comes in the context of GST council’s decision to keep the tax at 28%
Currently, state-run lotteries have a 12 percent tax rate and inter-state lotteries run by middle agents have a 28 percent tax rate.
The GST council decided on a uniform rate of 28 percent throughout the country despite the protest from the part of the state.
The decision regarding the price of lotteries have been taken after consultation with trade unions in the lottery industry.
The finance department said that the government has decided not to take half the net profit in order to make sure that the agents and lottery sellers have not incurred a loss.
The profit of the government will come down from 14.4 percent to 6.6 percent.
SOURCE: Local Media Reports.Tags: India, VAT, Tax Rate