Brazilian Gamers: Taxes Are Killing Us

April 7, 2010 -

Residents of Brazil are faced with excessive taxes on videogames, a situation that a new online petition is attempting to call attention to.

The Campaign for Fair Tax Video Games (translated) notes that Brazilian videogame purchases contribute only 0.5 percent to the global industry, while the smaller country of Mexico contributes 2.0 percent, a direct result of higher taxes on videogames. The site claims the taxes cause games and consoles to cost up to three times more in Brazil than they do in the U.S.

The petition states that the higher taxes contribute to piracy, hurt retailers, discourage investment in advanced technologies needed to establish game development in Brazil and also put a damper on gaming companies investing in the South American country.

A bill that would have addressed the tax issue was formulated in 2007, but has apparently been caught up in bureaucracy. The petition asks Antonio Palocci, in Brazil’s Chamber of Deputies, to get the bill back into motion and to receive a commitment from Congress for its approval.


Thanks Maurício!


Comments

Re: Brazilian Gamers: Taxes Are Killing Us

This is the reason my relatives are always asking me or family in the U.S. to send them PS3s or 360s. They're way too expensive there.

 

"The difference between genius and stupidity is that genius has its limits." -Albert Einstein

"The difference between genius and stupidity is that genius has its limits." -Albert Einstein

Re: Brazilian Gamers: Taxes Are Killing Us

It's probably not as bad as in Mexico. But what has happened due to the high taxes is most people cross over to the states for a day buy a console and games and then jump back into Mexico. :P All of my family does that. XD

Re: Brazilian Gamers: Taxes Are Killing Us

How high are the video game taxes in Brazil?

http://www.magicinkgaming.com/

Re: Brazilian Gamers: Taxes Are Killing Us

According to the law project (supported by the campaign) author, in some states it can reach 273% over the importation price. I did some calculations myself (I planned to open a import business) and concluded that he is right.

 

Example, a PS2 is to reach a store as 99 USD, we can suppose that Sony sells it for 60 USD (just an example, I don't know the actual value), the importer would need to pay 60 USD to Sony, and 273% of 60 USD to the government, so 163 USD. After that, the console can be sold to retail stores. The retailer will need to pay more taxes to buy the already imported console, and the shipping from the importer to his store. The shipping company, pays taxes too, and puts the taxes on his price, likewise, the retailer, put his own paid taxes to his final price too (remember that people has to profit too, so likely the retailer don't paid 60 + 163 to the importer, probably he paid like 20 USD more...).

So, if you see a official non-smuggled PS2 here, the final price is 400 USD usually (really, I am not kidding).

Games, are also godamn expensive (I don't own a PS3, but I went to the store see if God Of War III sold well, and indeed the store sold almost all copies, altough it was not a great amount of copies... The price: 120 USD... on that store, some stores sell it for 200 or even 300 USD, depending on how much he bribed the government guy at the airport, how lucky he was, and what state he is).

It is easy to see, why PS2 games here are all pirated (well, I only saw ONCE a original PS2 game, it was a FFX-2 that the guy paid 200 USD, and I saw like a huge amount of PS2 machines...), they are 200 USD too, the same applied to DS, PSP, etc... (A friend once went to buy a DS castlevania, it was priced 148 USD, of course he gave up, and downloaded it to his R4 instead).

This is the reason of this campaign. People here want to prove that they are not everyone "evil pirate scum" and to do that, they want make games drop to a price where they are buyable (oh yes: extra bit of data: 70% of the population, has as salary 300 USD or less... so if you want a PS2 and a single game, you would have to wait 4 months, and don't eat, don't use electricity, don't pay taxes, don't use public bathrooms, that here are charged, don't... you get it).

 

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--- Maurício Gomes twitter.com/agfgames
 
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Andrew EisenAs it happens, Chinatown Wars is the only GTA game I've played.04/19/2014 - 10:43am
Papa MidnightWith GTA5 (to date) failing to even provide indication of a PC release, I'm realising that this might be the first GTA game that I have not played (outside of Chinatown Wars) since the series inception.04/19/2014 - 8:14am
IanCSo im guessing a bunch of edutainment games, which a lot of people elsewhere are going gaga over, dot count as classics? Okay. If you don't mind me, i have a sudden urge to play Putt Putt....04/19/2014 - 6:15am
MaskedPixelantehttp://www.joystiq.com/2014/04/18/playstation-99-cent-sale-discounts-tokyo-jungle-super-stardust/ Weekend long PSN flash sale. So much stuff is 99 cents for the rest of the weekend.04/18/2014 - 5:59pm
Adam802http://www.polygon.com/2014/4/18/5627928/newtown-video-game-addiction-forum04/18/2014 - 4:14pm
Matthew Wilsonit is a video talking about why certain games/products/consoles do well, and others do not. he back it up with solid research.04/18/2014 - 3:56pm
Andrew EisenI'm not keen on blind links. What is it?04/18/2014 - 3:45pm
Matthew Wilsonthis is worth a whatch https://www.youtube.com/watch?v=MyXcr6sDRtw&list=PL35FE5C4B157509C904/18/2014 - 3:43pm
MaskedPixelanteNumber 3: Night Dive was brought to the attention of the public by a massive game recovery, and yet most of their released catalogue consists of games that other people did the hard work of getting re-released.04/17/2014 - 8:46pm
MaskedPixelanteNumber 2: If Humongous Entertainment wanted their stuff on Steam, why didn't they talk to their parent company, which does have a number of games published on Steam?04/17/2014 - 8:45pm
MaskedPixelanteNumber 1: When Night Dive spent the better part of a year teasing the return of true classics, having their big content dump be edutainment is kind of a kick in the stomach.04/17/2014 - 8:44pm
Matthew Wilsonhttp://www.giantbomb.com/articles/jeff-gerstmann-heads-to-new-york-takes-questions/1100-4900/ He talks about the future games press and the games industry. It is worth your time even though it is a bit long, and stay for the QA. There are some good QA04/17/2014 - 5:28pm
IanCErm so they shouldn't sell edutainment at all? Why?04/17/2014 - 4:42pm
MaskedPixelanteNot that linkable, go onto Steam and there's stuff like Pajama Sam on the front-page, courtesy of Night Dive.04/17/2014 - 4:13pm
Andrew EisenOkay, again, please, please, PLEASE get in a habit of linking to whatever you're talking about.04/17/2014 - 4:05pm
MaskedPixelanteAnother round of Night Dive teasing and promising turns out to be stupid edutainment games. Thanks for wasting all our time, guys. See you never.04/17/2014 - 3:44pm
Matthew WilsonAgain the consequences were not only foreseeable, but very likely. anyone who understood supply demand curvs knew that was going to happen. SF has been a econ/trade hub for the last hundred years.04/17/2014 - 2:45pm
Andrew EisenMixedPixelante - Would you like to expand on that?04/17/2014 - 2:43pm
MaskedPixelanteWell, I am officially done with Night Dive Studios. Unless they can bring something worthwhile back, I'm never buying another game from them.04/17/2014 - 2:29pm
PHX Corphttp://www.msnbc.com/ronan-farrow/watch/video-games-continue-to-break-the-mold-229561923638 Ronan Farrow Daily on Video games breaking the mold04/17/2014 - 2:13pm
 

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