In what has come as a direct consequence of the Centre’s choice to impose 28 per cent tax on the complete face worth of bets in on-line gaming, casinos and horse racing, common gaming platform Cellular Premier League has determined to put off 50 per cent of its staff in a cost-cutting measure.
In keeping with media stories, 350 staff of the corporate will lose their jobs.
The corporate clarified that the job cuts are the direct fallout of the federal government choice.
Founders of the corporate, Sai Srinivas and Shubh Malhotra, in an e mail to the workers on Tuesday, mentioned the final month has been “extraordinarily difficult and unsure” for everybody on the firm.
“Final week, it was confirmed {that a} 28 per cent GST shall be levied on the complete deposit worth quite than on Gross Gaming Income. The brand new guidelines will enhance our tax burden by as a lot as 350-400 per cent. As a enterprise, one can put together for a 50 per cent or perhaps a 100 per cent enhance, however adjusting to a sudden enhance of this magnitude means we have to make some very robust choices,” the mail learn.
“As a digital firm, our variable prices predominantly contain folks, server and workplace infrastructure. Subsequently, we should take steps to convey these bills down in an effort to survive and to make sure that the enterprise stays viable.”
“Regrettably, we must let go of round 350 of you. This has been a heart-wrenching course of as a result of it impacts loads of our buddies and colleagues,” they mentioned.
Final week, Finance Minister Nirmala Sitharaman confirmed that the 28 per cent tax will keep and mentioned a evaluation of the tax shall be performed after six months.
