Ukie has responded to the EC’s investigation into proposed tax credits for UK game developers by arguing the case for games’ cultural influence, and outlined the “clear and evident market failure” of the current system.
The EC announced that it would be investigating the proposed tax credits in April, and while Ukie was ‘extremely disappointed,’ it remained confident the tax credits would be pushed through eventually. Today, it re-stated its case for the tax credits, intending to overturn the doubts the EC has expressed over the proposals.
Alongside arguing the case for games’ increasing cultural influence, it also suggested that European culture is not being represented fully by the videogames market, and that tax schemes in other territories represent “an existing and tangible market failure which has resulted in a lack of culturally European games being created.”
“Ukie is strongly of the view that the UK’s proposed tax credit is a targeted, proportionate solution which represents the minimum intervention necessary to address the relevant market failures,” it added.
Ukie CEO Dr Jo Twist said: “Fewer people are making games in the UK, which means that fewer games are being made which advocate our sense of humour, our creativity and our identity as European citizens. We need to have tax credits introduced as soon as possible”.
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