GST hike a blow to Kerala’s lottery sector, says CM Pinarayi Vijayan
Pinarayi Vijayan says even though GST hike will result in Rs 3.35-crore revenue loss for each lottery draw for state, tickets will continue to be sold at Rs 50
Kerala Chief Minister Pinarayi Vijayan has said the Centre’s decision to increase the Goods and Services Tax (GST) on lottery tickets from 28 to 40 per cent has dealt a severe blow to Kerala’s lottery sector and those who depend on it for their livelihood.
Addressing a press conference on Monday (October 13), the chief minister said both he and Finance Minister KN Balagopal had repeatedly appealed to the Union Finance Ministry and the GST Council—both directly and through letters—not to raise the GST rate on lotteries.
“Despite our repeated requests, the Centre chose to ignore our pleas, leading to a steep tax hike that has adversely affected the sector,” he said.
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No rise in ticket price
Pinarayi emphasised that the state government has always stood by the lottery trade, which serves as a crucial source of income for thousands of ordinary citizens who have few other livelihood options.
“Even though this decision results in revenue loss for the state, we have decided not to increase ticket prices. The tickets will continue to be sold at Rs 50,” he said.
Loss for state
The chief minister said the state would lose Rs 3.35 per ticket as a result of the hike, translating to a loss of Rs 3.35 crore for each lottery draw. To offset this, the government has reduced operational margins, agency commissions, and other internal expenditures instead of burdening consumers.
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“About 60 per cent of the total revenue from ticket sales goes to prize money. With sales declining slightly, there has been a minor reduction in total prize payouts,” Vijayan added.
He said the government is reviewing the existing structure of agent discounts and agency commissions to ensure that workers and their families are not adversely affected. “The state will take all necessary measures to protect the livelihood of those dependent on the lottery sector,” he assured.