TIGA praises Scottish Affairs Committee report into Games sector tax break
UK video games trade association TIGA has praised the Scottish Affairs Select Committee report which recommends that an in-depth review which could lead to the implementation of a tax relief for the games sector, is taken.
The ‘Video Games industry in Scotland’ report was published today and has recommended that the Government reviews the economics of a Games Tax Relief, as well as re-examining canceling the tax.
Also contained within the report is an acceptance that many of the association’s key arguments for the tax relief scheme not to be dropped by the Government due to its being poorly targeted and also because the Government failed to consult with the gaming industry before deciding to drop the break last year.
The report also says that the UK games industry is not competing on a level playing field and that there is an inconsistency between Government support for a Film Tax Credit and none for the Gaming industry, while claiming that existing tax credits should also be enhanced.
Dr. Richard Wilson, CEO of TIGA, said that the Committee had vindicated many of its arguments and had recognised ‘compelling arguments’ for a tax relief for the Games industry.
He also said that the committee had dismissed the Governments claims that Games Tax relief would be poorly targeted and that it criticised the Government for not supporting the industry.
“The UK videogames industry is high tech, highly skilled and export oriented. If the Coalition Government is serious about its intention of rebalancing the economy then it should invest in the UK video games industry by introducing Games Tax Relief. This would create jobs, boost investment, power an export focused sector and generate much needed tax revenue for the Government,” continued Wilson.
He explained that the introduction of Games Tax Relief would improve access to finance for UK video games companies.
“TIGA will continue to lead the campaign for Games Tax Relief – a measure that would help a wide range of UK games businesses, from small to large development studios working across a spectrum of different platforms," concluded Wilson.