New Delhi: Tiger Global, Peak XV and Steadview Capital are among 30 foreign and domestic investors that have called on Indian Prime Minister Narendra Modi to review the 28% gaming tax, a letter showed, saying the levy would adversely impact $4 billion in potential investment.
India last week announced a tax on the funds collected by online gaming companies from their customers. Sports such as fantasy cricket have become increasingly popular in recent years, but have also raised concerns about addiction among players.
“The tax decision has caused shock and dismay, (and) has substantially undermined investor confidence in supporting this or any other emerging sector in the Indian tech ecosystem,” the letter, signed by the investors and seen by Reuters, said. significantly reduce.”
The letter states that the decision will “adversely impact potential investments of at least $4 billion over the next 3-4 years and hence adversely impact the growth of the gaming sector in India.”
Modi’s office did not respond to a request for comment. The tax proposal is pending approval by Parliament.
Tiger Global and Peak XV, formerly known as Sequoia Capital India, have invested in Indian gaming companies such as Dream 11 and Mobile Premier League.
Despite the industry’s pleas, the Indian government has stated that several ministers on a government tax panel view betting on online gaming platforms as a “social evil”, and there is no need to further consult the gaming industry on the matter.
More than 100 gaming firms recently wrote a letter to the finance ministry with a similar request, saying the tax would stifle foreign investment and put at risk the $2.5 billion already invested in the sector.
(Reporting by Aditya Kalra and Nikunj Ohri in New Delhi; Writing by Chris Thomas and Tanvi Mehta; Editing by Savio D’Souza, Kim Coghill and Muralikumar Anantharaman)
Disclaimer: This report is generated automatically from Reuters news service. ThePrint takes no responsibility for its content.
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