Legal sanctions possible
The government of the Indian state of Maharashtra will proceed with plans to claim more than Rs933 crores (US$142 million) in taxes from the state lotteries of three states: Arunachal Pradesh, Sikkim and Mizoram.
According to New Indian Express, the lotteries are sold and distributed by private players including Sugal & Damani Group, Essel (Zee) Group and Martin Group. In accordance to the Maharashtra Tax on Lotteries Act 2006, liability of payment of tax lies with the promoter.
According to a January 3 letter to the three states, a promoter is defined as the “government of any state or Union Territory or any country organizing, conducting or promoting a lottery (in Maharashtra) and includes any person appointed as first importer for making lottery tickets in the state of Maharashtra by such government or country.”
The government said it will pursue legal avenues if the states fail to pay the taxes.
