The letter comes in the backdrop of the ongoing controversy surrounding the recommended 28 per cent Goods and Services Tax (GST) on gaming proposed by the GST Council.
Sanjay Malhotra, the revenue secretary of India, in a series of interviews justified the 1200-1300 per cent increase in GST. He argued, “If the demand is inelastic and people are actually addicted to it, then the government gains in revenue. On the other hand, if the demand is elastic, then a social purpose is served because it is addictive, and against our social values, because it is betting.”
In an open letter, the pro gamer, Deep Patel, challenged this characterisation, saying, “In one stroke, you called us ‘addicts’ and gaming as ‘betting’. You also said that gaming is against ‘our social values’. Sir, if all that you said is true, why allow gaming at all?”
According to his linkedin profile, Deep Patel, has been playing FIFA, Poker and chess and has represented India at several prestigious gaming events.
The letter went on to clarify the distinction between games of skill and games of chance. The letter noted, “You term ‘gaming’ as ‘betting’. This, sir, is completely unwarranted and false. You are very well aware that betting is banned in India. Betting is completely a game of chance. We, the gamers of India, play games of skill, like chess, poker, and hundreds of other games. Please do not insult us by calling us criminals.”
Responding to the revenue Minister’s statement that “It (28 per cent GST) may also have an economic rationale because people will hopefully use this time in more productive activities”, the letter drew attention to the global economic significance of the gaming industry. “Sir, are you saying that gamers are unproductive? Gaming globally is a 250 billion dollars economic activity. Certainly does not look “unproductive”. We, the gamers, are hardworking and law abiding young people of India. We fully support our beloved Prime Minister Narendra Modi’s vision of the digital economy contributing a substantial part of India’s proposed 5 trillion dollars economy,” the letter read.
The controversy comes at a time when India’s gaming industry is experiencing exponential growth. According to Lumikai, an investment fund focused on gaming, India witnessed an astounding increase in the number of gamers, reaching over half a billion in FY22 compared to 450 million in the previous year. Moreover, India emerged as the largest consumer of mobile games globally in FY22, with a remarkable 15 billion downloads throughout the year, as per a report.
–IANS
cs