FICCI Asks For 10 Year Tax Holiday For Gaming Co’s; Reduction In Duties For Consoles

FICCI has asked for a 10 year tax holiday for animation and gaming industries from the Union Budget, reports Indiantelevision. A FICCI paper demands for the reduction in duty for gaming consoles, which is currently at around 36.74 percent. As per the paper, “A recent study conducted by a market research agency, estimates that by lowering the CVD alone, which currently stands at 16.32 per cent, will result in projected import of gaming consoles to the tune of 400,000 units in the next five years.”
Financial Express has a breakup of the duties on imports of machine for production of visual effects, games and animation:
– Basic duty of 12.5%
– Countervailing duty of 16.32%
– Special countervailing duty of 4%
– Educational Cess
On top of that, there’s a 12 percent service tax.
No wonder some market players are more bullish on Internet gaming than console gaming in India…