“The Turf Authorities have submitted a representation to the Union Finance Minister seeking review of the GST of 28 per cent imposed on the racing industry,” Hyderabad Race Club chairman R. Surender Reddy told the media at the release of a souvenir for this weekend’s races at Malakpet.
“The Turf Authorities have urged the Government that the GST be computed on commission and not on total amount wagered,” Mr. Reddy said.
He said total amount wagered was showing a sharp decline and turnover having dropped drastically, he said.
“The figures arrived are interrelated from a commercial perspective and clearly demonstrate the effect of taxes on the scale of wagering and the taxes thereto, which are inversely proportional,” the HRC chairman explained.
The punters, as a result, were being driven to illegal/ grey channels of betting, as in cricket, resulting in lower tax returns, Mr. Reddy said. If relief was not granted, it could result in far-reaching consequences to the racing industry, he said.