
The income of the state government government is likely to see immersion due to a tax increase on lottery tickets, said Finance Minister KN Balagopal. In a written response to the State Legislative Assembly, Mr. Balagopal said that the government had taken steps without making tickets to deal with the situation created by tax and services (GST) on lottery cards.
Despite the protests from the states, including Kerala, the GST Council came out tax on lottery tickets from 28% to 40%. Mr. Balagopal said that the hike was unfavorable to the lottery sector, and stated that the government would need more time to properly assess the impact of GST increases on the lottery, because the latest GST reforms came into force of only 22 September.
With regard to development, however, the government carried out a “nominal reduction” in the Commission for Money and Agent, he said. He said the protection of the sector and the living of people addicted to him, he said.
Weekly lottery
The Kerala State Lotteries department operates a weekly lottery, as well as a lottery of bumpers, such as the extremely popular bumper Thiruvonam, which bears the highest CRORE 25 GBP. According to the budget estimates, the state government expected that gross income from lottery sales increased from 11,892.88 Crore in 2022-23 to 14 121.14 Crore in 2025-26.
At the beginning of this year, the state government urged the Minister of Finance of the Union of Nirmal Sitharaman not to increase the tax on lottery tickets. The GST rates would reduce ticket sales, which would affect the sector -dependent people, the state claimed. Kerala also urged the center to allow states to determine the tax rate of lottery in their jurisdiction.
Published – October 6, 2025 05:03