The government of Maharashtra has initiated a process to recover more than Rs. 933 crores (US$142 million) in taxes from the lotteries of Arunachal Pradesh, Sikkim and Mizoram, which are sold within the state, local media reports.
The lotteries of these three states are sold and distributed by private players including Sugal & Damani Group, Essel (Zee) Group and Martin Group.
In accordance to the Maharashtra Tax on Lotteries Act 2006, liability of payment of tax lies with the promoter.
“Promoter is defined as government of any state or Union Territory or any country organizing, conducting or promoting a lottery (in Maharashtra) and includes any person appointed as first importer for making lottery tickets in the state of Maharashtra by such government or country,” wrote a letter sent January 3rd to the three states.
“Hence, assessment order and demand notice have been sent to the respective states,” said an official in the finance department.
The government said it will pursue legal avenues if the states fail to pay the taxes owed.