Kerala lottery workers protest 40% GST, threatening state revenue and livelihoods

Kochi: An unprecedented crisis is unfolding in Kerala as lottery agents and workers across the state prepare to launch a protest against the recent hike in GST on lottery tickets. There are growing concerns that the price of tickets could increase by at least ₹10.

It was only two months ago that the price of lottery tickets was raised by ₹10. Those working in the sector say even that increase negatively affected sales. Millions of people with limited incomes buy lottery tickets in the hope of a better future. Any further price hike is expected to seriously impact sales. If the protest intensifies, there is a real possibility that lottery sales across the state could come to a halt.

Finance Minister K.N. Balagopal, who recently inaugurated the protest declaration convention, stated that the state government stands in solidarity with the workers.

A large-scale protest could lead to reduced availability of tickets and disruptions in lottery draws. Without any income, workers in the sector — over one lakh individuals, including people with disabilities — would face severe hardship.

From the government's perspective, any instability in the lottery sector would significantly affect revenue. The tax rate has now been raised from 28% to 40%. This unexpected increase comes in the middle of sales for the Thiruvonam Bumper lottery. The revised tax will come into effect on September 22, just days before the Thiruvonam Bumper draw on the 29th. The Onam Bumper, which includes a first prize of ₹25 crore and several other major prizes, is now under uncertainty due to the lack of clarity on how the revised taxation will be implemented.

Despite the state's request for a delayed implementation citing these concerns, the central government has not considered it, according to the Finance Minister. In lthe ight of these issues, the state government has convened a meeting on Wednesday with all concerned parties for further discussions.

The Joint Action Committee, comprising various trade unions, has announced a march to the Raj Bhavan on September 15. Protests will then continue in various districts, followed by a march to Parliament. Kerala is the only state in the country that operates a paper lottery system. In addition to daily draws held throughout the week, the state also runs six bumper lotteries. On average, 1.08 crore lottery tickets are sold every day, not including the bumper tickets.