A consortium of 30 foreign and domestic investors, including giants like Tiger Global, Peak XV, and Steadview Capital, has urged Prime Minister Narendra Modi-led government to rethink its 28% tax on online gaming companies’ collected funds.

This plea came in response to a tax imposition that would inflate the tax burden by 1,100%, rendering the online real money skill gaming business model unsustainable.

What Happened? The investors’ letter, viewed by Reuters, warned of the potential harm to investor confidence and the likelihood of investment write-offs due to the tax. This is the first time foreign investors have lobbied directly in such a manner.

See also: Ashneer Grover Pans 28% GST On Online Gaming, Says Foreign Funds May Dry Up

Why It Matters? The investor appeal mirrors the sentiments of over 100 gaming firms who, in a letter to the finance ministry last week, voiced concerns about the tax suppressing foreign investment and endangering the $2.5 billion (₹20,485 crore) already invested in the sector.

Investors Tiger Global and Peak XV, formerly known as Sequoia Capital India, have stakes in Indian gaming companies such as Dream11 and Mobile Premier League. ChrysCapital, Kalaari Capital, and Bennett, Coleman & Company are among the other signatories of the letter.

Read next: Nazara Says 28% GST Will Only Hit Real Money Gaming, Impact Will Be Small

Photo by sutadimages on Shutterstock