Alappuzha: The state government’s decision to levy tax on those who win small lottery prizes above Rs 10,000 multiple times a financial year is feared to cause a drop in ticket sales. A majority of those who buy lottery tickets in Kerala expect a prize of Rs 5,000 and not more. As a result, the decision to levy taxes could adversely impact their ticket purchases, concerned officials of the sector said.
At present, a 30 per cent tax deducted at source (TDS) is levied from those (Prizes above Rs 10,000)who arrive at lottery offices directly to redeem prizes for winning tickets. Aadhaar details are mandatory for the procedure. However, as of now, Aadhaar has not been made mandatory for those who redeem prizes via lottery agents. If made mandatory, then ticket sales are likely to drop further.
The government decision comes in line with the Centre’s guidelines as per the Income Tax (Amendment) Act, 2023. Earlier, taxes were levied only for prizes above Rs 10,000. However, the union government proposed to implement the new system from April onwards in order to avoid tax evasion by those who receive small gifts multiple times.
However, the state lottery department issued an order in this regard only on May 22. Also, they allegedly did not give enough publicity to the order on account of objections from a section of lottery sellers.
Meanwhile, some of the agents have started campaigning to avoid the drop in ticket sales due to the levying of taxes.
Published: 03 Jul 2023, 09:47 am IST
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