Lokesh Choudhary · · 1 min readTiger Global, Peak XV urge Indian PM to review gaming tax proposal
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Investors such as Peak XV Partners and Tiger Global Management have together appealed to Indian Prime Minister Narendra Modi to review the proposed changes to India’s online gaming tax regime.
The 28 other investors that signed off on the letter include ChrysCapital, DST Global, Tribe Capital, RTP Global, among others.
In the letter, the investors expressed their worry that the new tax program could have consequences on the sector’s growth and the overall vision of India’s digital economy reaching US$1 trillion.
Earlier this month, the Indian Goods and Services Tax Council proposed to increase tax on online gaming transactions from 18% to 28%.
“The current GST proposal will set up the most onerous tax regime for the gaming sector globally, which will lead to a potential write-off of the US$2.5 billion capital invested in this sector,” the investors wrote. “This move could force the closure of numerous gaming startups and necessitate substantial industry-wide restructuring for survival.”
The investors are also seeking a meeting with Modi to further discuss the matter.
Some of India’s most well-known gaming companies are MPL, Dream11, WinZo, and Ashneer Grover’s CrickPe.
See also: The rare SG indie game studio making millions on original IP
Editing by Miguel Cordon and Jaclyn Tiu
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