How streamlining lottery sales can help garner Rs 50000 crore to government

By: |
New Delhi | Published: April 1, 2018 12:02:49 PM

Streamlining the regulatory and taxation structure for sale of lotteries can help garner additional funds of up to Rs 50,000 crore to the exchequer, a leading lottery distributor has claimed.

lottery sales, sale of lotteries, Sugal & Damani Group, Lottery Regulation Act, West Bengal, Punjab, Arunachal Pradesh, taxation structure of lotteriesUnder the Lottery Regulation Act, private parties are not allowed to run lottery schemes. (Representative image: PTI)

Streamlining the regulatory and taxation structure for sale of lotteries can help garner additional funds of up to Rs 50,000 crore to the exchequer, a leading lottery distributor has claimed. Sugal & Damani Group also said a streamlined structure for lottery sales has the potential to generate over 10 lakh jobs. Currently, sales of lotteries are permitted in many states including Goa, Kerala, Maharashtra, West Bengal, Punjab, Arunachal Pradesh, Mizoram and Sikkim.

Under the Lottery Regulation Act, private parties are not allowed to run lottery schemes. Sugal & Damani Group works as a distributor of state lotteries and provides lottery operational technology to 17 jurisdictions worldwide. The group’s CEO Kamlesh Vijay said that streamlining regulatory and taxation structure of lotteries as well as a change in people’s perception towards the segment can play wonders to the exchequer.

“In India, lotteries have the potential to contribute anywhere between Rs 35,000 crore and Rs 50,000 crore on annual basis (to the exchequer),” he told PTI. According to him, the funds garnered through lotteries can be used for public welfare schemes and development of sports on the lines of the US, the UK and China.

In Kerala, the government has announced that resource mobilisation for a comprehensive health scheme would be done through lottery funds, he said. Vijay also expressed concerns about the current tax structure for lotteries. Under the Goods and Services Tax (GST), sale of lotteries can attract 12 per cent to 28 per cent tax. In February, he had also written a letter to Prime Minister Narendra Modi suggesting streamlining the sale of lotteries in the country.

Follow financialexpress.com for all news and analysis on the Lok Sabha Elections 2019. Check Lok Sabha election 2019 schedule, Lok Sabha Constituency Details and updates on campaigning by Narendra Modi and Rahul Gandhi. Like us on Facebook, follow us on Twitter.

Switch to Hindi Edition
FinancialExpress_1x1_Imp_Desktop