Mobile Premier League lays off 350 employees, HR News, ETHRWorld

Bengaluru-based online real money gaming company Mobile Premier League (MPL) has said it is letting 350 of its employees go, in light of the recent decision by the goods and services tax (GST) Council’s decision to levy 28% tax on the sector at full face value. This would be nearly 50% of MPL’s team size, sources said, underscoring the impact of the measure.

In an internal email sent to the staff on August 8, MPL cofounder and chief executive Sai Srinivas wrote, “Last week, it was confirmed that a 28% GST will be levied on the full deposit value rather than on gross gaming revenue (GGR). The new rules will increase our tax burden by as much as 350-400%. As a business, one can prepare for a 50% or even 100% increase, but adjusting to a sudden increase of this magnitude means we need to make some very tough decisions”. ET has reviewed a copy of the email.

The GST council on July 11 had decided to impose 28% tax on online gaming at full face value. This came as a surprise to the gaming industry, which had been batting for tax to be levied on the GGR, or the platform fee, charged to users.

Following the announcement, stakeholders of the online gaming industry, including companies and investors, had made multiple appeals to the government, urging for a relook into the new tax rules.

While the new tax regime has not kicked in yet, the industry expects a manifold rise in tax…