This past Sunday, June 16, 2019, Brazil's current president, Jair Bolsonaro, announced through his social media accounts that the federal government is looking for a way to reduce import taxes on technology products. If everything goes as planned, the tax rate could fall from the current 16% to 4%.
In the words of President Jair Bolsonaro:
“To stimulate competitiveness and technological innovation, the government is studying, through a secretariat of the Ministry of the Economy, the possibility of reducing import taxes on information technology products, such as computers and cell phones, from 16% to 4%.”
President Jair Bolsonaro.
On the same occasion, the president stated that this measure would also affect video games. According to the information available, the government's main objective is to increase the competitiveness and productivity of companies that use technological equipment in their activities.
As we video game players know, the tax burden on games is monstrous in Brazil. Besides making them extremely expensive for end consumers, it hinders investment in this field, which is growing worldwide and generating billions of dollars annually. If approved, this measure could be the first step not only toward lower costs related to games, but also toward the possibility of Brazil becoming competitive in this industry.
