Kerala's Fight Against GST Hike on Lotteries: A Stand for Livelihoods
Kerala faces a challenge with the central government's decision to raise GST on lottery tickets from 28% to 40%. Despite financial strain, the state maintains ticket prices to protect livelihoods. The Kerala government explores cost-cutting measures to combat the increased tax while advocating for the sector's workers.
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In a significant statement, Kerala Chief Minister Pinarayi Vijayan criticized the central government's decision to increase the Goods and Services Tax (GST) on lottery tickets, viewing it as a severe blow to the state's lottery sector. Speaking at a press conference on Monday, Vijayan disclosed that the GST has unexpectedly risen from 28% to 40%.
Despite numerous appeals made by Vijayan and Finance Minister K N Balagopal to the Union Finance Ministry and the GST Council, their requests to avoid this tax hike were disregarded, according to Vijayan. The Chief Minister emphasized the state government's commitment to shielding the lottery trade, which is vital for thousands lacking alternative employment.
Determined to prevent an increase in ticket prices, the Kerala government will maintain the Rs 50 ticket price, even though this decision leads to a Rs 3.35 loss per ticket in government revenue. Measures such as cutting costs in operational surplus, discounts, and agency commissions are being reviewed to mitigate the financial impact on the sector's workforce.
(With inputs from agencies.)
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