Bolsonaro announces new import tax reduction for video games

President Jair Bolsonaro (PL) announced this Thursday (16), via social media, a reduction in the collection of Import Tax on video games and accessories. The fare change will be valid from the 1st of July.

With the measure, according to the Chief Executive, the reduction will be from 16% to 12% in the rates levied on imports of parts and accessories for consoles and video game machines.

The collection of the tax on video games with built-in screen, portable or not, and their parts, will be zeroed. The rate applied to the final price of the product was 16%.

The Ministry of Economy has not yet presented an estimate of the loss of revenue with the measure and announced that it will manifest itself “when the formal procedures related to the meeting of the Executive Management Committee of Camex (Chamber of Foreign Commerce) are closed”.

The tax reduction takes effect at the time of publication of the decree in the DOU (Official Federal Gazette) and does not require approval from the Legislature.

This is the fourth time that Bolsonaro has announced some kind of tax exemption for video games, the last cut had been announced in August 2021 on IPI (Imposto sobre Produtos Industrializados). At the time, the president was losing support within the gamer community, especially among his influencers, as shown by Sheet.

Second placed in polls with less than four months to go before the elections, Bolsonaro has been promoting a series of cuts in taxes and import tariffs.

On social media, the president stated that the government has been reducing or zeroing product taxes since 2019. As examples, he mentioned medicines and supplies to fight AIDS, cancer and Covid-19, foods that make up the basic basket, fuel and others. items.

On May 23, Camex approved a 10% reduction in Import Tax rates on most products purchased abroad. Beans, meat, pasta, rice and building materials were among the items included in the tariff reduction.

The Chamber of Foreign Trade had already announced, on May 11, a reduction in import tariffs on two types of steel rebars and had zeroed out the rates for seven foods: boneless beef, chicken pieces, wheat flour, wheat, corn in grains, crackers and biscuits and other bakery and pastry products.

In April, the president issued a decree to increase the cut in IPI rates from 25% to 35%, under the justification of stimulating the economy and reducing prices for consumers.

Products such as refrigerators and washing machines benefited from the measure, while items such as cell phones, TV sets, air conditioners, microwaves and motorcycles were not included in the list of additional reductions.

The measure, however, was judicialized and part of its effectiveness suspended. On May 6, Minister Alexandre de Moraes, of the Federal Supreme Court (STF), suspended an excerpt from the president’s decree. The decision was valid only for goods produced in the Manaus Free Trade Zone.