Scottish Parliamentary Committee Admits there are ‘Compelling Arguments’ for Games Tax Relief
A report published by the Scottish Affairs Select Committee has been welcomed by TIGA, the trade association that represents the UK’s gaming industry.
The Video Games Industry in Scotland report, published on the 7th February, admits that there are “compelling arguments” for games tax relief, as well as some “real concerns.”
It recommends that the government undertakes an in-depth review of the economics of games tax relief, and accepts many of TIGA’s arguments for the system.
The government originally voted down the proposals for games tax relief being put forward by TIGA back the middle of last year. The most recent report confirms that the government failed to consult with the video games industry before scrapping the proposals and that the UK’s industry is not competing on a level playing field with it’s competitors in Canada an Asia.
Benefits of Games Tax Relief
TIGA has widely published research, which states that games tax relief would either create or safeguard over 9,000 jobs, approximately £431 million in development investment and £394 million in tax receipts to the Treasury.
Although the report did not come to a consensus it has come as a relief to TIGA’s Ceo, Dr Richard Wilson – who has been lobbying the government for game tax relief since it was elected in May. He said “the independent, cross-party Scottish Affairs Select Committee has vindicated many of TIGA’s arguments”, and added that it was “absurd” that there is a government supported film tax credit, but no similar provision for the video games industry.
He went on to state that games tax relief would: “create jobs, boost investment, and generate much needed tax revenue. TIGA will continue to lead the campaign for games tax relief.”