Kerala Lottery Workers Protest Steep GST Hike with Raj Bhavan March

Thiruvananthapuram: Thousands of lottery sellers in Kerala took to the streets on Monday, September 15, marching towards the Raj Bhavan to protest against the Union Government's recent decision to increase the Goods and Services Tax (GST) on paper lotteries from 28% to 40%. The protest, organized under the banner of the Bhagyakuri Samrakshana Samiti — a joint front of trade unions — showing their dissent against the deliberate move to dismantle Kerala’s lottery sector.

The march, which began near the Museum Police Station, was blocked by police before it could reach the Raj Bhavan. Despite the barricade, workers staged a dharna, voicing their anger and concern over the tax hike, which directly threatens the livelihoods of over two lakh people across the state.

Since the implementation of GST in 2017, the tax on lotteries was initially set at 12%. In 2020, it was increased to 28%, and now, just five years later, the sudden jump to 40% is a 350% hike in total. The Union Government has equated state-run lotteries with gambling and betting, drawing sharp criticism from Kerala, where the state-run lottery system is widely transparent and scam-free.

He was joined by several prominent trade union leaders including V. Balan (All India Trade Union Congress - AITUC), T.B. Subair (CITU), and Indushekharan Nair (AITUC), among others.

Leaders pointed out that each worker stands to lose Rs. 4 per ticket in commission under the new tax regime, with no scope for raising ticket prices or reducing agent commissions. They also warned that crucial welfare schemes funded through lottery revenue — such as the Karunya Benevolent Fund that provides free medical treatment to 42 lakh families — could face severe disruptions.

Adding to Kerala’s concerns is the Union Government’s continued collection of cess over and above the GST, which is projected to generate Rs. 1 lakh crore in revenue. However, the Union Government has refused to share this with the states, drawing criticism not just from Kerala but also from some BJP-ruled states.

The Bhagyakuri Samrakshana Samiti has announced further agitations in the coming days. From Tuesday(September, 16), protests will be held outside union government offices in various districts, culminating in a march to the Parliament in the coming weeks.

As the new tax rate comes into force on September 22, the move is not only as a financial setback but also as an attack on one of Kerala’s most successful and socially inclusive revenue-generating initiatives.