Mumbai: Lottery traders from across the state staged a protest at Azad Maidan on Monday, demanding that the Goods and Services Tax (GST) be reduced to 12% instead of 28%. They claimed that their business has fallen by 25% from July 1.
The protesters, under the banner of Lottery Bachao Mahakruti Samiti, said the tax is on the sale of lottery tickets, which comprises prize money, government taxes, and operators’ margin. Earlier, the prize payout offered was 90%, which has reduced to 70% after the GST came into force.
Radheshyam Lahoti, a trader from Nanded, said, “There are around 100 lottery shop owners in Nanded. While they pay a minimum rent of ₹10,000 each, they earn ₹15,000 a month. The current rate of 28% has forced the owners to pay rent from their pockets.”
Dheeraj Gawde, a representative of PlayWin, said, “The tickets are issued by the State. Since lotteries are neither goods nor services, the application of the GST is objectionable. Dependent on the industry are unskilled and uneducated people who can’t suddenly shift to other sectors or will remain unemployed.”
The industry is estimated to be more than ₹50,000 crore. Besides Maharashtra, the trade is being practised in Goa, Sikkim and Punjab.
The losses the trade has incurred will take about three months to stabilise. Sunil Ingle from Aurangabad said, “My son’s education fees and daily household expenses are dependent on the cut I get as a retailer. It is necessary that the tax be reduced to 12%.”
Vaishnavi Khatate, an accountant with a distributor from Dadar, said most traders have outstanding amounts to pay the lottery winners, and the losses could not be recovered.
According to the estimates by the Samiti, 12% GST will still ensure a minimum revenue of ₹700-800 crore per annum to the State. A group of protesters met Finance Minister Sudhir Mungantiwar. “We will protest in Delhi if our demands are not met with,” said Mr. Gawde.
