Business News: MPL shows the effect of a 28% tax! Hundreds of workers were let go!
App for fantasy gaming MPL plans to lay off 350 staff in order to dodge the 28% GST on online real-money games, according to firm founder and CEO Sai Srinivas in an internal memo to employees.
Sai Srinivasan talks about layoff
Sai Srinivasan stated that, aside from personnel, the company's main expenditure is the server and office infrastructure, which must be decreased in order to minimise spending. Indeed, on July 11, 2023, the GST Council announced the introduction of a 28% GST on online gambling, which would take effect on October 1, 2023. While the online gambling companies had submitted a letter to the Prime Minister demanding that this decision be reconsidered.
The GST Council decided on August 2 that the 28% ruling on internet gambling, horse racing, and casinos will be applied beginning October 1, 2023. The GST Council will review the tax imposed six months after this date.
