Budget 2026: Esports players seek tax parity with traditional sports
What's the story
The gaming and esports industry is looking for budget support, policy clarity, and tax reforms in the upcoming Budget. The industry argues that if esports is recognized as a sport, then prize winnings should be treated like other sporting disciplines. Currently, a 30% tax is levied on esports prize money, while winnings from other sports are taxed according to applicable income tax slabs.
Government recognition
Recognition as a sport needed for esports
After the enactment of the Promotion and Regulation of Online Gaming Act, esports players are looking for formal recognition from the government. This would be a major step forward for the ecosystem. The law, which bans real-money games, has also clarified the distinction between competitive esports and betting-led gaming. However, stakeholders in gaming and esports still need clarity on tax frameworks across mobile, PC, and console gaming platforms.
Task force
AVGC Promotion Task Force needs more clarity
The 2022 Budget announced the Animation, Visual Effects, Gaming, and Comics (AVGC) Promotion Task Force. However, industry players are looking for more information on fund allocation and implementation frameworks. They will closely monitor this budget for concrete numbers, timelines, and execution frameworks. The industry also expects the Budget to shed light on AVGC-XR funds after a one-time provision was made in Revised Estimate (RE) 2024-25 but not in Budget Estimate (BE) 2025-26 for NCoE AVGC-XR.
IICT development
Call for more IICTs
Rajan Navani, chairman of JetSynthesys and CII India@100 Council, emphasized the importance of the Indian Institute of Creative Technologies (IICT) in strengthening the AVGC ecosystem. With an allocation of ₹391.15 crore, IICT is being developed like IITs and IIMs for creative technologies such as AVGC-XR. Industry players are calling for further capital infusion into these initiatives and establishment of more IICTs across India to bolster the AVGC ecosystem.