February 28, 2024
Video game tax credits may be revoked

Video game tax credits may be revoked

as pointed out Estadao, the video game tax cuts may end up being eliminated in Lula’s new government – import tariffs for these products have been lowered under the presidency of Jair Bolsonaro. Jet skis and sailboats will also be the target of the “cancellation” of the new president of Brazil.

As reported by the Brazilian newspaper, the team of the new CEO “has identified ordinances, ordinances and decisions to be annulled in a total of 20 annulments.” This was one of the Labor Party’s promises to its government.

The justification for eliminating tax cuts for video games, jet-skis and sailboats is that such measures would benefit luxury products and were taken without technical standards. Not only that, but they also violate the rules and decrees of Mercosur that changed the inclusion criteria in the previous tariff.

Video game taxes were cut in June

In July this year, the federal government reduced the rate of parts and accessories for games and consoles from 16% to 12%. For video games with screens (portable or not), the tax has been repealed. All of this includes the import tariff.

Already in August 2021 There was another cut in the tax on video games in Brazil: at that time, the IPI rate fell from 30% to 20%. measure MSRP for PS5 and PS4 was dropped at that time🇧🇷