Delta Corp falls to near three-year low on second tax blow in two months

BENGALURU: Shares of Delta Corp fell to a near three-year low on Monday, after the casino operator said its unit received an additional tax shortfall notice to pay 63.84 billion rupees ($766.8 million).

This compares to the company's third-quarter net revenue of 2.71 billion that it reported last week and a notice to pay tax arrears of 111.40 billion rupees last month.

Delta shares fell 10% to their lowest since November 2020 following the news, after the company lost roughly 40% of its market share this year.

In July, the Goods and Services Tax (GST) council decided to impose a 28% indirect tax on money collected by gaming companies.

While investors have urged Prime Minister Narendra Modi to review the 28% gaming tax, citing a setback to prospective investments of about $4 billion, the country's revenue secretary had said there was no need to rethink the tax.