MPL Layoff: Online gaming NPL (Mobile Premier League) is going to lay off 350 of its employees. The company has attributed this retrenchment to the increase in GST rates on online gaming. In an email sent to employees on August 8, Sai Srinivasan, co-founder and CEO of MPL, said that due to the increase in GST to 28 per cent, the tax burden on us would increase by 350 to 400 per cent. Due to this, the company has been forced to take tough decisions.
However, in the GST Council meeting held on August 2, it was decided that from October 1, 2023, the 28 percent decision on online gaming, horse racing and casino will be implemented. And six months after this date, the GST Council will review the tax imposed.
Companies will have to bear the brunt of this in the form of a decline in gaming volume. Due to 28 percent GST, job loss can be seen in the online gaming sector. Also, it will be difficult for Indian companies to compete with foreign companies. Due to high tax, people will refrain from playing online games. Tiger Global invested giant gaming company Dream11 and MPL will have to bear the brunt of this.
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