General Studies-02: Governance
1. Online gaming investors flag risks to jobs, investments in SOS to PM on GST
Top investors in India’s gaming sector have written to PM Narendra Modi for a review of the GST Council’s recent decision to levy 28% tax on the full value of bets placed by users, terming it the world’s most onerous regime that could wipe out $2.5 billion of investments and more than 50,000 high-skilled jobs.
Investments to the tune of at least $4 billion, planned over the next 3-4 years in the industry which had almost $3 billion in revenue in 2022 in India, could also be hit, as per the communique to the PM. Signatories include 11 domestic or India-focused funds such as ChrysCapital and Kotak Private Equity, and 19 overseas investors including Tiger Global.
‘Shock and dismay’
Stating the tax plan had caused ‘shock and dismay,’ they added it would “substantially and meaningfully erode investor confidence in the backing of this or any other sunrise sector in the India tech ecosystem.”
Skill-based, real-money gaming is India’s largest gaming sub-sector and also supports a significant proportion of the game-developer community across the country who, the investors pointed out, “are pivotal to the PM’s vision of making India a gaming superpower.”
There are about 400 Indian start-ups funded by marquee global investors in real money gaming.
Seeking time for a meeting with the PM or officials concerned, the investors emphasised they backed a robust, certain and fair tax regime that aligned with government’s socio-economic development goals.
Noting the industry was estimated to contribute about ₹4,500 crore in GST at the rate of 18% of the operator’s gaming revenue, the investors said raising this extant rate to 28% would have led to a 55% increase in GST collections without adversely impacting the sector.
“This would have also ensured the practice is in line with how GST/VAT is levied on gaming across most international markets… in 2000, the U.K. moved to a model of 15% tax on the operator’s gaming revenue, creating one of the largest and most sustainable gaming markets.
“In France, the Senate has noted that a tax model on full value does not work and is reverting to a model of taxation based on operator’s gaming revenue.
“However, the change in methodology to apply GST rates on ‘full value’ will result in wholesale destruction of the sector, including for many MSMEs and start-ups which may no longer be able to sustain business operations and will shut down with immediate effect,” they said.
General Studies-02: Indian Polity
2. Can’t ask govt. to recognise a language as official one: SC
The Supreme Court on Friday said it cannot direct the Centre to include Rajasthani as an official language in the Eighth Schedule of the Constitution. A Bench headed by Chief Justice of India D.Y. Chandrachud said the subject of the petition concerns a policy matter.
“Today you have come to include the Rajasthani language in the Eighth Schedule, tomorrow somebody else may come for some other language. This is a policy matter and not for the courts to give a mandamus,” the Bench informed the petitioner, Ripudaman Singh. The court referred to a 1997 reported decision of the Supreme Court in the Kanhaiya Lal Sethia case to note that “to include or not to include a particular language in the VIIIth Schedule is a policy matter of the Union”.
General Studies-02:
3. Portal launched to report violation of ban on e-cigarettes
The Centre had cautioned the States and U.T.s about the easy availability of e-cigarettes.
Despite the ban imposed by the Union government in 2019, e-cigarettes continue to be sold on e-commerce sites, even to children below 18, warn experts working in the area of tobacco control. Now to curb this, the Health Ministry has launched an online portal to facilitate reporting of violations under the Prohibition of Electronic Cigarettes (Production, Manufacture, Import, Export, Transport, Sale, Distribution, Storage and Advertisement) Act (PECA).
The portal, www.violation-reporting.in, will allow faster action against any reported violations, the government said.
“The ban on electronic cigarettes was introduced to protect our younger generation from a new form of toxic addiction. It’s a welcome move by the Health Ministry to launch the online portal for strict enforcement, implementation and to ensure the ban is effective,” Binoy Mathew, programme manager, Voluntary Health Association of India, said.
The Ministry had earlier cautioned all States and Union Territories about the weak implementation of PECA, leading to easy availability of e-cigarettes through online, retail, convenient stores, stationery shops and near educational institutions.
The States were also directed to review the compliance of PECA and issue necessary instructions for effective implementation of the provisions of the Act, through special drives and random checking.
“Health Ministry also issued a public notice in view of e-cigarettes ban violations and its availability in the Indian market,’‘ Ranjit Singh, advocate, Supreme Court of India, said.
General Studies-02: Polity
4. Impose President’s Rule in Manipur, Cong. urges Murmu
Members of the Tamil Nadu Youth Congress stage a protest against the ongoing ethnic violence in Manipur, in Chennai, on Friday.PTI
Congress leader P. Chidambaram seeks neutral administration under President’s Rule for communities in the State to start a dialogue
The Union government should dismiss the Biren Singh government in Manipur and impose President’s Rule in order to start the peace process under a neutral administration, the Congress said on Friday.
The party objected to Prime Minister Narendra Modi’s statement in which he equated crimes against women in the Congress-ruled Rajasthan and Chhattisgarh with the May 4 Manipur incident in which two women were paraded naked by a mob.
Referring to Mr. Modi’s statement about being angry over the incident, Congress president Mallikarjun Kharge tweeted, “If you were angry then instead of making false equivalence with Congress-governed States, you could have first dismissed your Chief Minister of Manipur.”
‘Dismissal, first step’
In a Twitter post, P. Chidambaram, a former Home Minister, explained why the Chief Minister’s dismissal could be the first step for different communities to reconcile their differences. He said Meiteis, Kukis and Nagas have to live together under whatever legal arrangements are accepted by all. “Each ethnic group has grievances against another group. Irrespective of who is right or wrong, eventually the three groups must talk to each other and arrive at a social and political compact,” he said. “To enable Meiteis and Kukis to stop the violence and talk to each other, there must be a neutral administration. That is why I have pleaded that a spell of President’s Rule is desirable,” he said.
The party also questioned the National Commission for Women for not taking action against the Biren Singh government despite receiving a complaint about the incident.
“The CM has no moral right to continue in his position, he must step down immediately. The PM must speak in Parliament after which a discussion should take place,” Congress leader Jairam Ramesh tweeted.
Addressing a press conference, Congress leaders Pramod Tiwari and Pawan Khera appealed to President Droupadi Murmu to exercise her powers to dismiss the State government. “If the country now has any hope, it is from President Droupadi Murmuji. We want to urge you to use your special powers and dismiss the government in Manipur,” Mr. Khera said.
