‘As government, we don’t understand technology’ – Karnataka IT Min Priyank Kharge on online gaming industry and 28% GST
Karnataka’s IT Minister Priyank Kharge recently appeared at a conclave, wherein online gaming’s concern related to 28% GST were discussed. Kharge opined that the government’s approach to regulate online gaming industry is not optimal.
He highlighted the primary issue as the government’s uncertainty regarding distinguishing between games of chance and games of skill, attributing this ambiguity to the industry’s challenges. Kharge repeatedly raised concerns, deeming the demands imposed as ‘unrealistic and unreasonable.’
Contrary to Kharge’s stance, Revenue Minister Krishna Byre Gowda holds differing opinions on the taxation of online gaming. When asked about this contradiction, Kharge attributed it to Gowda’s association with the GST department, while Kharge himself comes from the IT industry. He emphasized that the government’s unfamiliarity with technical aspects is causing hardship for the industry.
Kharge underscored the adverse effects of the 28% GST on online gaming activities. He claimed that within a week of its implementation, around 7,000 job cuts occurred in the industry, with some smaller companies forced to cease operations entirely.
He insisted that the government lacks an understanding of technology. Additionally, Kharge demanded a clear differentiation between skill-based games like chess and games of chance. While he firmly opposed any form of gambling, he advocated for a distinct separation between these activities.
Critiquing the application of GST to gaming, Kharge accused the government of stifling the industry. He metaphorically remarked, “When you have a cold, you take medicine, not cut off the nose,” pointing to the detrimental impact of government policies.