Thiruvananthapuram, Oct 14 (UNI) The GST rate revision implemented by the Central Government has dealt a severe blow to Kerala’s lottery sector, as the tax on lottery tickets has been increased from 28 per cent to 40 per cent in one stroke.
As a result, the State Government will incur a revenue loss of Rs 3.35 per ticket, amounting to approximately Rs 3.35 crore for each lottery draw.
The government has avoided increasing ticket prices by reducing operational margins, discounts, and agency commissions. Currently, 60 per cent of the total ticket sales revenue is distributed as prize money.
“Despite repeated requests, both in person and through letters, to the union Finance Ministry and the GST Council not to raise the tax rate on lottery tickets, the Centre has shown a completely dismissive attitude. This has led to a steep increase in the tax burden on the sector,” the Chief Minister stated.
The State Government, which has consistently sought to protect the lottery trade as a source of livelihood for many ordinary people who cannot engage in other forms of employment, has decided not to raise ticket prices even though it will lead to a reduction in revenue. Despite the GST hike from 28 per cent to 40 per cent, the ticket price will remain at Rs 50.
However, the Chief Minister admitted that sales have slightly declined, resulting in a minor reduction in total prize payouts. The government is reviewing possible structural changes in the agent discount and commission framework.
He assured that the government will take all necessary measures to ensure that the GST revision imposed by the Centre does not adversely affect lottery workers and their families.
