Kerala CM slams Centre’s GST hike on lottery, vows to protect sector
Thiruvananthapuram (PTI): Kerala Chief Minister Pinarayi Vijayan on Monday said the central government’s decision to raise the Goods and Services Tax (GST) on lottery tickets has dealt a severe blow to the state’s lottery sector.
"The GST on lottery tickets has been abruptly increased from 28 per cent to 40 per cent," Vijayan told reporters at a press conference here.
He said both he and Finance Minister K N Balagopal had repeatedly appealed—directly and through letters—to the Union Finance Ministry and the GST Council not to raise the tax rate.
"However, the Centre ignored all our requests, and that is what led to this steep tax hike," he added.
Vijayan stressed that the state government remains committed to protecting the lottery trade, which provides livelihoods to thousands of ordinary people who cannot find other jobs.
"Despite the fall in government revenue, we have decided not to raise the ticket price and to continue selling them at the existing rate," he said.
Even though the GST rate has been raised to 40 per cent, the chief minister said the ticket price would remain Rs 50. He added that this decision would cost the government Rs 3.35 per ticket in lost revenue—around Rs 3.35 crore per draw.
"To avoid a price hike, the government has cut costs in areas such as operational surplus, discounts, agency commissions, and prizes," he said, adding that around 60 per cent of total sales revenue is given out as prize money.
Vijayan also said the government is reviewing changes to agent discounts and agency commissions to reduce the impact.
"The state government is taking all possible steps to ensure that the GST revision imposed by the Centre does not hurt the workers and families who depend on the lottery sector," he added.
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Minister Patil chairs industry meetings to chart growth for key sectors in Karnataka
Bengaluru (PTI): Karnataka Minister M B Patil on Tuesday chaired meetings with industry representatives from the aerospace and defence, machine tools, auto/EV, and green energy sectors to discuss sector growth and government support measures.
The meetings were attended by leading industrialists and their representatives, with some participating virtually.
Speaking on the occasion, the minister for Large and Medium Industries said Karnataka is at the forefront of the country’s aerospace and defence sectors.
He noted that Suzuki and Toyota plan to launch aerial taxi services in Japan by 2028, with Bengaluru-based Sasmos supplying electrical equipment for the project.
Industrialists suggested introducing similar “fly-taxi” services in Karnataka through an appropriate policy, which Patil said would be examined seriously.
The minister highlighted the need to establish testing centres and Common Facility Centres for the aerospace and defence industries and assured that these facilities would be provided.
Suggestions were also made to prepare a comprehensive roadmap for sector growth.
Karnataka has urged the Central Government to approve Defence Corridor projects in the Bengaluru North–Kolar–Chikkaballapur and Dharawada–Vijayapura–Belagavi regions.
Industrialists also suggested a corridor between Bengaluru and Mysuru, Patil said.
He said Karnataka aims to become a hub for defence electronics manufacturing, with plans to establish a 200-acre Defence Electronics Park and a 100-acre Avionics and Sensor Park.
These projects will be implemented once the Special Investment Region is operational, and land availability will not be an issue.
On the machine tools sector, Patil said the industry has recorded an annual turnover of Rs 36,500 crore and is witnessing steady growth.
Large-scale exhibitions have increased demand, and the state must strengthen its capabilities to develop control systems for heavy machinery. One testing unit is already operational in Bengaluru, with another planned for Tumakuru. Expansion of vocational training institutes in industrial areas is also underway.
In the Auto and EV sector, Vision Group members highlighted the need for a network of dry ports and more EV charging stations across the state.
Patil noted that the Tata Group is manufacturing EV buses in Dharawada for nationwide supply. Plans for mini excavator production and export facilitation were also discussed, along with the establishment of a testing facility for two-wheeler EVs.
For the Green Energy sector, the group emphasised the need for a suitable policy on battery-based energy storage and the establishment of data centres.
Patil assured that the government will seriously consider all suggestions and respond positively.
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