Monday, 14 December 2009

TIGA Responds To No-Tax-Break Decision

For the last few months TIGA has been calling for support from the government in the form of tax breaks for the UK gaming industry. The UK’s international rivals enjoy such tax breaks from their respective governments. However, last week it was revealed from Alistair Darling’s pre-budget report that these much needed tax breaks would not be granted by the government.

TIGA have said that this decision was both a “mistake” and a “failure of imagination.” CEO Richard Wilson commented:
"We have consistently warned the Government that without the introduction of a Games Tax Relief the video games development sector will likely decline by 5% each year over each of the next five years."

"Conversely, if a Games Tax Relief is introduced, then the industry will eventually enjoy annual growth of 4%. In addition, Games Tax Relief will more than pay for itself. Over five years the tax measure would cost £192 million but would deliver £415 million in tax receipts. Games Tax Relief would also secure 3,550 highly skilled graduate level jobs."
He added that it is imperative that the government better aid the industry for it to remain “world beating” and to generally secure its long term position as a digital industries leader.

Source: DigitalSpy

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