The State government is considering two amendments to the rules under the Kerala Tax on Paper Lotteries Act of 2005 to prevent fraudulent operations by the promoters of paper lotteries of other States.
Talking to The Hindu, Finance Minister T.M. Thomas Isaac said these amendments had become necessary in the light of several irregularities that had come to the government's notice in the distribution and sale of lottery tickets from other States in Kerala.
As per one of these amendments, the promoters of the lotteries of other States would have to file an advance statement on a monthly basis, indicating all details about each lottery draw they would conduct during the month. They would also be required to remit tax in advance for each draw.
Unauthorised draws and evasion of duty could thus be prevented.
The second amendment to the rules would make it obligatory for the promoters to obtain a certificate from the Union government each month proving their status as approved promoters of the particular lottery/lotteries, the tickets of which they were distributing and selling in Kerala. In effect, the lottery promoters would have to renew their registration for operating in Kerala on a monthly basis.
They would also be required to satisfy the condition that they had not been involved in any violation of Section 4 of the Central law governing lotteries.
Dr. Isaac said the State government had written 19 letters to the Union government over the past six or seven years (including the period when the United Democratic Front was in power) pointing out serious irregularities on the part of the promoters of paper lotteries of other States. The State government had also been urging the Union government to amend the Central law suitably to prevent the lottery promoters from indulging in fraudulent activities that had come to notice time and again, he said. The Law Department was now vetting the rule amendments proposed by the Finance Department, Dr. Isaac said.