Bolsonaro announces new video game tax reduction – 10/26/2020 – Market



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President Jair Bolsonaro announced on Monday (26) the reduction of the IPI (tax on industrialized products) for video games, in a new round of cuts in the sector’s tax burden. We are a family owned and operated business.

Bolsonaro took action amid a severe economic crisis caused by the new coronavirus pandemic, in which the federal government is struggling to raise funds.

In a message on a social network, Bolsonaro said that the rate on consoles and gaming machines will be reduced from 40% to 30%.

The tax on spare parts and accessories for consoles and gaming machines will drop from 32% to 22%; and the rate on video game machines with incorporated screen and their parts will be reduced from 16% to 6%.

Bolsonaro also said that the changes will be in the Official Gazette of the Federation on Tuesday (27).

According to the General Secretariat of the Presidency, the measure has a monthly impact of R $ 2.7 million. The resignation forecast is R $ 36 million for next year and R $ 39 million for 2022.

The IPI of these products had already been reduced by the Bolsonaro government last year.

The president’s youngest son, Jair Renan, works in the field of electronic games and, at the end of August, he met with the special secretary of Culture, Mario Frías, to discuss the so-called eSports.

The meeting, which was not on Frías’s official agenda, was initially disclosed on a social network by Jair Renan, a law student.

“Today I had an important meeting with the Secretary of Culture, Mario Frías,” he wrote on 04 on his Instagram profile.

“The future of ‘sport’ is being governed,” he added in the caption of the photo in which he appears with the secretary, in front of a Brazilian flag and a photo of Bolsonaro.

E-sports, or electronic sports, are “competitions played in electronic games in which players act as professional athletes of traditional sports and are watched by an audience in person or online, through various streaming platforms on line or TV “, according to one definition appears on the website of CBeS, the Brazilian Confederation of eSports.

Regarding the meeting, the secretary responded at the time only that Frías “received Mr. Jair Renan Bolsonaro to address issues related to the future of eSports.”

In May, Bolsonaro’s son, 04, was kicked out of Twitch, a game streaming platform. In a broadcast at the time, he denied the pandemic and the need for social detachment.

The president’s decision to cut taxes on video games comes after the government, as part of the tax reform sent to Congress, proposed eliminating exemptions that apply to books.

In August, the Ministry of Economy confirmed its intention to end the exemption of the book, highlighting that it is not a new taxation, but a benefit that will not be maintained.

“CBS (Social Contribution in Operations with Goods and Services) is based on the assumption of not granting benefits,” the ministry said in a note. “In this sense, the zero-type hypotheses were eliminated (there were more than a hundred) previously foreseen. Therefore, the zero rate that applied to accounting transactions was also eliminated ”.


From 40% to 30%

IPI reduction for game consoles and machines

From 32% to 22%

lowering for console parts and accessories

From 16% to 6%

reduction for consoles with built-in screen, portable or not, and their parts

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