Indian video games industry representatives demand classification, lower tax
Video game companies have called on the newly elected government to break the existing division of online games to boost growth in the sector.
A group of 70 Indian video games and esports companies has requested the newly formed government to break the classification of online games into two—video games and real money games.
The companies drafted a representation letter to the Prime Minister’s Office and the Office of the Minister of Information and Broadcasting (MIB). A total of 10 recommendations were drafted as a part of this letter and the National AVGC-XR Policy.
Indian gaming companies have been subjected to heavy taxes which have been stunting growth as small companies could not sustain the sudden tax burden. The body suggests the government should move video games from the 18% to the 12% GST bracket.
Additionally, the letter also suggests that premature regulations must not be imposed on the video game industry.
The body requests that the government support structures for promoting original IP creation and ownership, along with steps taken to create frameworks for higher education in game development and esports.
Regulations of online games and esports have been opaque. To solve this, the body recommends that the I&B Ministry be appointed as the nodal agency for video games. It also recommends the creation of an AVCG-XR Wing and the appointment of a nodal officer.
“We urge the government to take a measured and nuanced approach to video games as they have definite potential to spearhead India’s creative economy and soft power aspirations," said Harish Chengaiah, founder and CEO of Outlier Games, organiser of the representation.
"Despite several requests to be involved in policy discussions, we were never given an audience. We hope at least now we get invited to deliberate on the unique circumstances of video games that are far different from real money games," he added.
FAU-G developer, Dot9, Nodding Heads Games, and SuperGaming are some of the companies that have signed the letter to the government.
Edited by Jyoti Narayan