Chief Minister Pinarayi Vijayan has announced that the state government is actively implementing measures to protect the livelihoods of individuals who depend on the lottery sector, especially after the recent increase in Goods and Services Tax (GST) on lottery tickets.
On Monday, he revealed that Kerala’s government is now losing a staggering ₹3.35 crore from each lottery draw. This significant revenue dip is a direct consequence of their policy to maintain existing ticket prices, aiming to shield families reliant on the lottery from the burden of the increased tax.
Remarkably, despite a substantial rise in the GST from 28% to 40%, the price of a standard lottery ticket remains at ₹50.
Mr. Vijayan explained that this price stability is achieved by absorbing the additional cost through cuts in the government’s operational profits, agent discounts, and prize money. He noted that 60% of all sales revenue is allocated to prizes. He emphasized that the central government’s decision to increase this tax has had a profoundly negative effect on Kerala’s lottery operations.
He also highlighted that both he and Finance Minister K.N. Balagopal had appealed to the GST Council and the Union Finance Ministry to reconsider the lottery tax hike, but their pleas were ultimately ignored.