Thiruvananthapuram: Finance minister K N Balagopal said that the state government will not increase the price of lottery tickets, despite the GST Council’s decision to raise the tax on tickets to 40 per cent from 28 per cent.

The minister gave an assurance in this regard during a discussion with representatives of trade unions on Wednesday. Instead of hiking ticket prices, the government plans to address the situation by making adjustments in areas such as prize money, agency commission, agency prizes and the profit share accruing to the state. A detailed plan will be worked out and shared with the trade unions soon, he added.

lottery-structure-table

Currently, the state runs seven weekly lottery tickets, excluding bumper draws, bringing 1.8 crore tickets into the market. A recent revision of the prize structure has already boosted sales. Considering this, trade unions have suggested that no further changes to the structure are necessary at this stage.

Under the earlier 28 per cent GST, 14 per cent of the revenue went to the state government, which was in addition to the existing 2 per cent profit margin. With the GST rate now increased to 40 per cent, the state’s tax revenue will rise by 6 per cent. The government is also considering whether a portion of this additional income can be allocated to sustain lottery operations.

Lottery Director Dr Midhun Premraj also took part in the discussions.

TAGS

Google News Add as a preferred source on Google
The comments posted here/below/in the given space are not on behalf of Onmanorama. The person posting the comment will be in sole ownership of its responsibility. According to the central government's IT rules, obscene or offensive statement made against a person, religion, community or nation is a punishable offense, and legal action would be taken against people who indulge in such activities.