Online gaming platform MPL to lay off 350 employees, blames tax for big step | Tech News

Online gaming platform MPL to lay off 350 employees, blames tax for big step

  • Mobile Premier League (MPL) says it will will lay off as many as 350 employees as a result of the tax imposed by the government.

| Updated on: Aug 08 2023, 23:40 IST
Amazon Prime Day gaming laptop specials: Check deals on Dell, Acer, Asus and more
1/6 The Amazon Prime Day sale kicks off on July 15! Check out the discounted gaming laptops from Dell, Acer, Asus, and more.  (Pexels)
2/6 Dell G15: The laptop features a 15.6-inch FHD display along with 12th Generation Intel Core i5 processor. It comes with a 512GB Solid State Drive and an orange backlit keyboard. The laptop price starts from Rs.103437, however on July 15 you can get it for a huge price cut. (Amazon)
3/6 Acer Nitro gaming: The laptop features a 15.6-inch QHD IPS display with a 165Hz refresh rate. It is powered by a 12th Gen Intel Core i7-12650H processor with 1TB storage. The Acer Nitro gaming laptop price starts from Rs. 181999. However,, you can get it at a huge discounted price during the Amazon Prime Day sale.  (Amazon)
4/6 Asus TUF gaming: It comes with a 15.6-inch LED-backlit FHD display with a 144Hz refresh rate. It has a dedicated NVIDIA GeForce GTX for enhanced gaming graphics. Additionally, it has a storage capacity of 512 GB. The price of the laptop ranges from Rs.74990. It will be available at a huge discount price during the Amazon Prime Day sale.  (Amazon)
5/6 Lenovo Legion 5 Pro: The laptop features a 16-inch QHD display with a 5th Gen AMD Ryzen 7 processor. It has a 1TB storage capacity and 2TB expandable storage. It is powered by NVIDIA GeForce RTX 3060 for enhanced graphic experience. It is priced at Rs. 195890 and will be available at a huge discount from July 15.  (Amazon)
image caption
6/6 2023's Amazon Prime Day gaming laptop specials have been revealed and you can avail huge benefits on these powerful gaming machines. So, start filling your cart because the sale starts at midnight!  (Amazon)
icon View all Images
Mobile Premier League (MPL) says it will will lay off as many as 350 employees (MINT_PRINT)

Gaming platform Mobile Premier League (MPL) says it will will lay off as many as 350 employees as a result of the tax imposed by the government on online gaming companies. MPL said it was a step taken to "survive", Reuters reported on Tuesday quoting an internal memo.

Notably, the Indian government has slapped a heavy tax that the gaming industry is saying it will not be able to bear. The move by MPL to sack a large chunk of its workforce is now being blamed on the tax. 

You may be interested in

MobilesTablets Laptops
7% OFF
Apple iPhone 15 Pro Max
  • Black Titanium
  • 8 GB RAM
  • 256 GB Storage
28% OFF
Samsung Galaxy S23 Ultra 5G
  • Green
  • 12 GB RAM
  • 256 GB Storage
Google Pixel 8 Pro
  • Obsidian
  • 12 GB RAM
  • 128 GB Storage
Apple iPhone 15 Plus
  • Black
  • 6 GB RAM
  • 128 GB Storage

Last month, the government decided to impose a 28% tax on funds that online gaming companies collect from their customers for every bet. 

Also read
Looking for a smartphone? To check mobile finder click here.

However, at the beginning of August, the government had provided partial relief and said it will levy taxes on online gaming companies on the total funds deposited to play online games and not on every bet.

The tax on bets placed on online games will be implemented from October 1, despite various states demanding a review, including Delhi and Goa.

The new rule will increase the company's tax burden by 350%-400%, MPL CEO Sai Srinivas said in the memo, adding that the company is revisiting expenses related to their server and office infrastructure.

Half the workforce employed by the company could be laid off, Reuters quoted a source as saying.

"Adjusting to a sudden increase of this magnitude means we need to make some very tough decisions ... We must take steps to bring these expenses down in order to survive and to ensure that the business remains viable," Srinivas said.

A gaming start-up Quizy's founder also announced shutting down of their business due to GST rate increase, PTI reported.

Quizy Founder Sachin Yadav in a Linkedin post said that "recent developments in the tax landscape and regulatory environment have left us with no choice but to bid farewell to our beloved gaming venture."

Yadav said that the removal of the TDS exemption limit and the provision of flat 30 per cent TDS on all winnings had hit the company very hard.

"The introduction of a 28 per cent GST rate on entry fees further compounded our woes and murdered the industry finally," Yadav said.

The GST Council, led by the Union finance minister and representatives of all states, had discussed the language of amendments that will be needed to enable the tax on online gaming.

The panel meeting in August was to deliberate on the tax law changes that would be required to implement it.

Union FM Nirmala Sitharaman said Delhi finance had minister opposed the levy of the tax on online gaming while Goa and Sikkim wanted the levy on GGR (gross gaming revenue) and not on face value.

Sitharaman, however, said other states ranging from Karnataka to Gujarat, Maharasthra and Uttar Pradesh wanted the decision taken at the last meeting to be implemented.

More than 100 gaming firms said in a letter to the finance ministry that the tax will stifle foreign investment and put $2.5 billion already invested in the sector at risk.

There would be a review of the levy after six months of its implementation, the FM had added.

Catch all the Latest Tech News, Mobile News, Laptop News, Gaming news, Wearables News , How To News, also keep up with us on Whatsapp channel,Twitter, Facebook, Google News, and Instagram. For our latest videos, subscribe to our YouTube channel.

First Published Date: 08 Aug, 20:00 IST