No Tax Breaks for Games Industry Darling
Chancellor expected to rule out tax breaks.
Bad call Darling
UK Chancellor of the Exchequer, Alistair Darling, is likely to reject pleas from the UK's video games industry to bring tax breaks to help one of the country's most likely-to-succeed digital industries forward.
The news comes as the ailing Labour government attempts to prepare a pre-election budget that will minimise the chances of its decimation in the next national vote.
The Daily Telegraph reports that, "Calls from video game developers for government support are understood to have fallen on deaf ears, with chancellor Alistair Darling expected to reject the idea of a tax break for the industry in the pre-budget report."
The news was met with anger by Richard Wilson, chief executive of the videogame trade association Tiga, who classified such a non-move as "a colossal mistake and a failure of imagination on behalf of the government".
Tiga proposed a structured tax plan that would have cost the nation initially £192 million. This is "roughly equivalent to three days' worth of interest payments on the burgeoning national debt – over a five-year period", according to the broadsheet report.
The news comes as the ailing Labour government attempts to prepare a pre-election budget that will minimise the chances of its decimation in the next national vote.
The Daily Telegraph reports that, "Calls from video game developers for government support are understood to have fallen on deaf ears, with chancellor Alistair Darling expected to reject the idea of a tax break for the industry in the pre-budget report."
The news was met with anger by Richard Wilson, chief executive of the videogame trade association Tiga, who classified such a non-move as "a colossal mistake and a failure of imagination on behalf of the government".
Tiga proposed a structured tax plan that would have cost the nation initially £192 million. This is "roughly equivalent to three days' worth of interest payments on the burgeoning national debt – over a five-year period", according to the broadsheet report.
Companies:
ELSPA
Read More Like This
Comments
PreciousRoi 17 Feb 2010 17:04
1/3
Sooo...they need the tax breaks because they're probably going to be successful?
Hmmm...that sounds rather counterintuitive to me...
Hmmm...that sounds rather counterintuitive to me...
jenga_mad_janel 17 Feb 2010 17:28
2/3
the idea being it will stop developers from moving overseas (or closing), resulting in much more money being lost. - as well as maybe attracting more developers to set up shop.
darling is a muppet....literally! look at those eagle brows.
darling is a muppet....literally! look at those eagle brows.
PreciousRoi 17 Feb 2010 22:31
3/3
I thought they were caterpillars...
So I guess the thought is that the companies in sectors that aren't expected to do well aren't able to afford to move, so screw them anyway?
I'd be more supportive of initiatives to eliminate such tax breaks worldwide, rather than continue to perpetuate and encourage an international "bidding war"...
Y'know...a while back here in the States, someone had the bright idea of introducing "Tax Increment Financing" districts. Now on the surface they appeared to be a really good idea. Unfortunately, instead of benefiting communities, they usually end up benefiting well-connected developers, and are even the object of blackmail. "Gee, we'd really like to build this Wal-Mart here, next to your town, in this lovely "green field" on the outskirts of town, (that was probably going to be developed into high priced housing eventually anyway) buf if you don't designate it as "blighted" and give us a TIF district and Tax breaks, we'll go to the town next door and see if they'll be more reasonable."
Waah, Waah, Waah...we're too successful to pay taxes, if you're lucky and give us the Sudetenland we won't move to Canada...
So I guess the thought is that the companies in sectors that aren't expected to do well aren't able to afford to move, so screw them anyway?
I'd be more supportive of initiatives to eliminate such tax breaks worldwide, rather than continue to perpetuate and encourage an international "bidding war"...
Y'know...a while back here in the States, someone had the bright idea of introducing "Tax Increment Financing" districts. Now on the surface they appeared to be a really good idea. Unfortunately, instead of benefiting communities, they usually end up benefiting well-connected developers, and are even the object of blackmail. "Gee, we'd really like to build this Wal-Mart here, next to your town, in this lovely "green field" on the outskirts of town, (that was probably going to be developed into high priced housing eventually anyway) buf if you don't designate it as "blighted" and give us a TIF district and Tax breaks, we'll go to the town next door and see if they'll be more reasonable."
Waah, Waah, Waah...we're too successful to pay taxes, if you're lucky and give us the Sudetenland we won't move to Canada...