Debatable if taxation in India will lead to discourage those who choose to gamble

By Bharat Dogra
An important debate ensued in the recent GST Council meeting on taxing casinos. Finally on June 29 the decision on taxing casinos, online gambling and horse racing at 28% was deferred, particularly on account of the objections voiced by the Finance minister of Goa (as well as some others). Now a panel of state finance ministers headed by the Meghalaya Chief Minister Conrad Sangma has been formed to hear all sides before a final decision is taken, likely to be in August.
While commenting on this debate the Finance Minister Nirmala Sitharaman made an important statement. She said, “The one thing I would like to highlight to you all is whether it is horse racing , online gaming or casinos, the common thread which the committee highlighted was that they are all part of betting and gaming. In other words they are essentially gambling.” She added that there may be an element of skill or of chance but all these are essentially treated as gambling and taxed at the same 28% rate and in a way the panel appears to be in favor of continuing the status quo”.
This relates to the economic and taxation aspects of the debate, but this also has implications for the social impacts side of the debate. While taxation as a means of raising resources for the government is well recognized, it is debatable whether taxation will lead to discouraging those who choose to gamble in these various games. Keeping in view the serious and adverse social impacts of gambling, we need to be concerned also about any legitimization and justification tax regimes can provide for various forms of gambling.
A big player in casinos was quoted to have stated some time back in media, “The Indian government has asked casinos to build integrated resorts in Goa. Gambling operators who did not enter Macau, when the game was liberalized at the beginning of the millennium do not want to miss the boat in Goa, and want to bet on what might be the next Macau.”
Whatever may be the truth about the future plans it is clear that even with their present day limited range casinos have become identified in the public mind with several worsening social problems. Women may be least involved in gambling but still suffer more of its adverse social impacts.
While gambling has been a serious addiction for a long time in history, in modern times this problem has taken new forms with technology making it possible to spread gambling in new ways on a much wider scale. In addition powerful interests have been pleading for legalizing more forms of gambling including gambling and bets relating to sports events.
Crystal Fulton, Prof. of University College, Dublin has written, "Harmful gambling can have crippling financial and social effects on the gambler, their friends and family. In the first national study on the social impact of harmful gambling in Ireland, we examined how it affected recovering gamblers, their families and friends..... Talking to people from all walks of life ... we found that a common theme was the devastating social effects gambling had on people's lives." (The Conversation, "More than just financial loss, the social impact of gambling cannot be underestimated." Nov. 1, 2017.)
A review of existing research on this subject by Shou-Tsung Wu and Yeong-Shyang Chen says, "Although some researchers have found that the development of casino gambling has no direct association with an increase in criminal activities, most studies have shown that casino gambling may be correlated with the following social deviations : domestic violence, divorce, bankruptcy, drug and alcohol abuse, risky or illicit sexual behaviour (especially prostitution) and problem gambling. (Allcock 2000, Chhabra, 2007, Harill and Potts, 2003, Pelry 2003).
"Additionally, Stokowski (1996) and Long (1996), who studied gambling towns in Colorado and South Dakota, clearly indicated that the rates of criminal activities increased due to the development of casino enterprises in these two locations. The increase in the number of pathological gamblers is another concerning issue regarding the development of casino gambling."
According to Gordon Moody Association (Help for Problem Gamblers), "Anyone who gets caught up in the downward spiral of problem gambling finds only too soon that the negative impact on his or her life can be devastating. Finding money to gamble is usually the most immediate and obvious issue which brings with it enough problems, but in addition an all consuming compulsion to gamble at any cost leads to difficulties which affect employment, quality of life, family relationships and mental and physical health.
And, of course, problem gambling doesn't just affect the individual. It's estimated that for every problem gambler at least 10 other family members, friends and colleagues are also directly affected."
A 2010 study in the UNLV Gaming Research and Review Journal revealed that those classified as problem gamblers were, on average 84% more like to use hard drugs, 31% more likely to binge drink and 260% more likely to hire a prostitute.
Hence it is clear that gambling has very serious social impacts and the rapid spread of legal gambling should be resisted by social movements. In addition communities should also resist the widespread practice of various forms of illegal gambling. In school education and in other community places there should be a clear message against gambling, backed with adequate information on the adverse social impacts of gambling. The highly dubious arguments given for legalizing gambling, including betting in sports events, should be resisted strongly by providing all the strong evidence against the adverse social impacts of all forms of gambling.
The debate on gambling should not be restricted to tourism, taxation and revenue aspects, as the most important aspects relate to adverse social impact of gambling which should get the highest importance. The unfortunate tendency on the part of films to present mainly the glamorous side of gambling while neglecting the sufferings caused by it is another cause of concern.
---
The writer is Convener, Campaign to Save Earth Now. His recent books include ‘A Day in 2071’, ‘Navjivan’ and ‘Man over Machine-A Path to Peace'

Comments

Eight years of empowering tribal communities through water initiatives in Chhattisgarh

By Gazala Paul* In the heart of Chhattisgarh, amidst the echoes of tribal life, a transformative journey has unfolded over the past eight years. The Samerth organization has diligently worked to elevate the lives of indigenous communities in the Kawardha district through the project, "Enabling Baiga Community to access safe drinking water."

Regretful: Kapil Dev retired not leaving Indian cricket with integrity he upheld

By Harsh Thakor Kapil Dev scaled heights as an entertainer and a player upholding the spirit of the game almost unparalleled in his era. In his time he was cricket’s ultimate mascot of sportsmanship On his day Kapil could dazzle in all departments to turn the tempo of game in the manner of a Tsunami breaking in. He radiated r energy, at a level rarely scaled in his era on a cricket field. Few ever blended aggression with artistry so comprehenisively. Although fast medium, he could be as daunting with the ball as the very best, with his crafty outswinger, offcutter, slower ball and ball that kicked from a good length. Inspite of bowling on docile tracks on the subcontinent, Kapil had 434 scalps, with virtually no assistance. I can never forget how he obtained pace and movement on flat pancakes, trapping the great Vivian Richards in Front or getting Geoff Boycott or Zaheer Abbas caught behind. No paceman carried the workload of his team’s bowling attack on his shoulders in his eras muc

Martin Crowe played instrumental role in making New Zealand a force in world cricket

By Harsh Thakor* Late Martin Crowe was the perfect manifestation of how mere figures could not convey or do justice to the true merit of a batsman. Crowe was arguably the most complete or majestic batsmen of his era or the ultimate embodiment of batting perfection, or the classical batsmen. He perished 7 years ago, due to a rare and aggressive form of cancer, follicular lymphoma, which originated in 2012. In September, we celebrated his 60th birthday but sadly he left for his heavenly abode.

How the slogan Jai Bhim gained momentum as movement of popularity and revolution

By Dr Kapilendra Das* India is an incomprehensible plural country loaded with diversities of religions, castes, cultures, languages, dialects, tribes, societies, costumes, etc. The Indians have good manners/etiquette (decent social conduct, gesture, courtesy, politeness) that build healthy relationships and take them ahead to life. In many parts of India, in many situations, and on formal occasions, it is common for people of India to express and exchange respect, greetings, and salutation for which we people usually use words and phrases like- Namaskar, Namaste, Pranam, Ram Ram, Jai Ram ji, Jai Sriram, Good morning, shubha sakal, Radhe Radhe, Jai Bajarangabali, Jai Gopal, Jai Jai, Supravat, Good night, Shuvaratri, Jai Bhole, Salaam walekam, Walekam salaam, Radhaswami, Namo Buddhaya, Jai Bhim, Hello, and so on.

Towards 2024: Time for ‘We the People of India’ to wake up before it is too late

By Fr Cedric Prakash SJ* It is Constitution Day once again! We, the people of India, gratefully remember 26 November 1949 when the Constitution of India was passed and adopted by the Constituent Assembly. The Constituent Assembly comprised women and men of distinction, who were able to represent the heart and soul of the people of India without fear or favour. They gave of their best, so that we may a visionary Constitution, which would be the mainstay for and of democracy in India!

1982-83 Bombay textile strike played major role in shaping working class movement

By Harsh Thakor On January 18th, 1982 the working class movement commemorated the 40th anniversary of the Textile Workers Strike that lasted for 18 months, till July 1983. It was landmark event that played a major role in shaping the working class movement. With more than 2.5 lakh workers from 65 textile mills joining in this strike for almost two years, this strike became one of the most significant strikes in terms of scale and duration All democrats should applaud the mill workers’ united battle, and their unflinching resilience an death defying courage continues to serve as a model for contemporary working-class movements. Many middle class persons harboured opinions that the Textile workers were pampered or were a labour aristocracy, ignorant of how they were denied wages to provide for basic necessities. The Great Bombay Textile Strike is notably one of the most defining movements in the working class struggles in Post-independent India. Bombay’s textile industry flourished in

Ceasefire a tactical victory for Palestinian resistance, protests intensify across globe

By Harsh Thakor* The Zionist leadership and Netanyahu’s government were compelled to concede the defeat of their first attempt after almost 50 days of daily fighting in the Gaza Strip. Netanyahu was forced to concede that he was unsuccessful in suppressing the Palestinian Resistance; and that the release of the prisoners was only plausible because they accepted Hamas’ terms.

Odisha leadership crisis deepens: CM engages retired babus to oversee depts' work

By Sudhansu R Das Over decades, Odisha has lost much of its crop diversity, fertile agriculture land, water bodies, employment potential, handicraft and handloom skills etc. The state has failed to strike a balance between the urban and rural sector growth; this leads to the migration of villagers to the urban areas leading to collapse of the urban infrastructures and an acute labor shortage in rural areas. A large number of educated, skilled and unskilled Odia people have migrated to other states for higher education, quality jobs and for earning livelihood which plummet the efficiency level of government departments. Utmost transparency in the recruitment and promotion in the state government departments will improve governance mechanisms in the state. "No near and dear one approach" in governance mechanisms can only achieve inclusive growth for the state on payment basis. This is a moral hazard. When so many educated young people seek employment outside the

Massive tropical deforestation: Big finance's $307 billion go to forest-risk commodities

A note on report by Forests & Finance coalition -- Rainforest Action Network, TuK Indonesia, Profundo, Amazon Watch, Repórter Brasil, BankTrack, Sahabat Alam Malaysia and Friends of the Earth US: *** A new report released on ‘Finance Day’ at COP28 by the Forests & Finance Coalition , provides a comprehensive look into the role big finance plays in driving deforestation, biodiversity loss, climate change and human rights abuses in tropical forest regions. The report reveals that since the Paris Agreement, banks have pumped over $307 billion into high risk forestry and agriculture companies linked to tropical deforestation, proving that the policies of major global banks and investors are failing to prevent continued widespread forest and biodiversity loss.

20% of Indian businesses have no emission plan in place despite climate emergency: Report

By Jag Jivan New research underlines urgent need for strategies and transition plans to combat climate change, remain successful and meet stakeholder expectations.

Search This Blog