Bolsonaro announces 4th tax reduction for video games

President Jair Bolsonaro (PL) announced, this Thursday (16), another tax reduction for video games. The Chief Executive said on Twitter that as of July 1, 2022, the rate for importing consoles, machines, parts and accessories will drop from 16% to 12%.

In addition, Bolsonaro explained that the import tax rate for video games with built-in screens (whether portable or not) and their parts will be reduced from 16% to 0%, also starting next month.

This is the 4th tax cut specifically for the video game sector which was made by the economic team of the current government. In the last announcement, made in August of last year, the reduction was in the rate of Tax on Industrialized Products (IPI).

At the time, IPI rates dropped from 30% to 20% for video game consoles and machines. Regarding the parts and accessories of consoles and video game machines whose images are reproduced on a screen, the reduction was from 22% to 12%.

According to the federal government, the constant reductions aim to “encourage the development of the electronic games segment in the country — the fastest growing branch of the entertainment sector in the world”.

Despite the cuts, it is still difficult to predict whether there will be a drop in prices and, if so, when Brazilian consumers will be able to access the lower values.

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