President vetoes tax rebates for investments in national indie games

Last Friday (3), the Legal Framework for Games was sanctioned, however, the text of the project was made public and a veto caught the attention of the gaming industry in Brazil, mainly the indie games sector.

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President Lula (PT), in a statement published together with the official decision, did not agree with the idea of ​​reducing income tax by 70% for foreign companies that sent money outside the country, as long as they invested in independent games made in the country. Brazil.

The reason for this refusal was pointed out as contrary to the Constitution and the public interest. According to the President, no information was provided on how much this measure would affect public finances, as required by law.

Furthermore, the text does not include measures to compensate for this reduction in revenue, nor does it establish a deadline for this tax advantage, nor does it present data on how this would impact the budget in the years 2024, 2025 and 2026.

Veto involving indie games can be overturned

The veto is not definitive and this measure to strengthen the indie games sector in Brazil may fall. When? There’s no way to know. An analysis is still underway, edand according to the website GamingEra, this decision is generating heated debates in Congress.

For Rodrigo Terra, president of Abragames, this news came as a surprise. However, he believes that if the information is clarified, the incentives provided for in the Games Legal Framework should be accepted.