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Unlucky draw for lotteries evading tax

Updated on: 25 January,2011 06:55 AM IST  | 
Sanjeev Devasia |

State earns Rs 50,000 per lucky draw from a lottery of a different state; defaulters to be booked, delisted

Unlucky draw for lotteries evading tax

State earns Rs 50,000 per lucky draw from a lottery of a different state; defaulters to be booked, delisted

The state government has issued a list of lotteries, which are legal and whose draw dates are listed with the state, to protect people from the hands of fraudulent firms that also bleed the state coffers by evading tax.
The move came following complaints that agents, who sell lotteries allegedly owned by different states, pay the tax for only a few of them.



This apart, there were complaints that the agents were selling lottery tickets, promising prizes too costly and luring for their price, to common people who invest their hard earned money in buying the tickets hoping to get lucky.

But their dream of getting rich often turns into a nightmare, as the results of many of these lotteries never come out.

Worried that the state might be losing a huge chunk of revenue, the lotteries' department decided to issue a list of legitimate lottery firms, whose agents pay taxes to the state on a regular basis.

Cashing in
The lotteries' department plans to register cases against the promoters and distributors of illegal lotteries under the Lotteries Act 1998.

"The state earns a revenue of Rs 50,000 per lucky draw from a lottery firm, owned by other states. We have got complaints such as the agents selling lotteries, which are not actually listed with the state and for which revenue is not being paid," said Amitabh Joshi, lottery commissioner of the state.

He added, "Therefore, we have decided to list the lotteries and their respective draws for a particular period."

The state resolution featuring the list of these lotteries is available on the state government's website.
According to an estimate, the state government is said to be earning around Rs 100 crore by way of tax on lotteries.

VN Prabhu, a hotelier from Kalina, said, "The prize money of some of the lotteries are so mouth-watering that people are tempted to buy the tickets. But if the buyer does not get to know about the results, what is the point of purchasing a lottery ticket by shelling out your hard earned money. I used to buy a lot of tickets, but when I learnt that the results were not available anywhere.

I understood the agents were fooling us. If the government is collecting tax, why cannot it ensure that the customers are informed about the results of lottery results?"

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