In a letter to Indian Prime Minister Narendra Modi, 30 foreign and domestic investors claim that the 28% gaming tax will have a negative impact on $4 billion in potential investments. Among them are Tiger Global, Peak XV, and Steadview Capital.
The levy on the money that online gaming companies take from their users was declared by India last week. In recent years, games like fantasy cricket have grown in popularity, but they have also sparked worries about player addiction.
The tax ruling "has caused shock and dismay, (and) will substantially and meaningfully erode investor confidence in the backing of this or any other sunrise sector in the Indian tech ecosystem," according to a letter signed by the investors and obtained by the media.
The letter, the first instance of direct lobbying by investors against the tax move, said, "The decision will adversely impact prospective investments to the tune of at least $4 billion in the next 3-4 years and hence the growth of the gaming sector in India."
An inquiry for comment was not answered by Modi's office. Parliament still needs to approve the tax idea.
Previously known as Sequoia Capital India, Tiger Global and Peak XV have invested in Indian gaming startups like Dream11 and Mobile Premier League.
Despite industry protests, the Indian government claims that many ministers on the government tax panel see wagers on online gaming sites as a "social evil" and that there is therefore no need to further discuss the gaming business.
Similar requests were made to the finance minister lately by over 100 gaming companies, which said the levy would discourage foreign investment and jeopardise $2.5 billion already committed to the industry.
(Source:www.theprint.in)
The levy on the money that online gaming companies take from their users was declared by India last week. In recent years, games like fantasy cricket have grown in popularity, but they have also sparked worries about player addiction.
The tax ruling "has caused shock and dismay, (and) will substantially and meaningfully erode investor confidence in the backing of this or any other sunrise sector in the Indian tech ecosystem," according to a letter signed by the investors and obtained by the media.
The letter, the first instance of direct lobbying by investors against the tax move, said, "The decision will adversely impact prospective investments to the tune of at least $4 billion in the next 3-4 years and hence the growth of the gaming sector in India."
An inquiry for comment was not answered by Modi's office. Parliament still needs to approve the tax idea.
Previously known as Sequoia Capital India, Tiger Global and Peak XV have invested in Indian gaming startups like Dream11 and Mobile Premier League.
Despite industry protests, the Indian government claims that many ministers on the government tax panel see wagers on online gaming sites as a "social evil" and that there is therefore no need to further discuss the gaming business.
Similar requests were made to the finance minister lately by over 100 gaming companies, which said the levy would discourage foreign investment and jeopardise $2.5 billion already committed to the industry.
(Source:www.theprint.in)
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