TIGA, the trade association representing the UK video games industry, today welcomed Jim McGovern MP’s question on the Video Games Tax Relief at today’s Prime Minister’s Questions (PMQs). This is the second week running that Games Tax Relief has been raised at PMQs.
Dr Richard Wilson, TIGA CEO, commented:
“It is excellent that Games Tax Relief has been raised at PMQs again. This important issue is not going to go away. It is good that MPs like Jim McGovern are willing to champion the video games sector in Parliament. However, David Cameron’s negative response to Jim McGovern’s question is disappointing. Both the Conservative Party and the Liberal Democrats publicly and unequivocally supported Games Tax Relief before the General Election.
“The Prime Minister suggested that Government policy is aiming for lower rates of corporation tax rather than sector specific reliefs. Yet the Coalition Government continues to retain the Film Tax Credit. There is a complete lack of consistency in Government tax policy. The Prime Minister’s response to Jim McGovern’s question also ignores the fact that sector specific tax breaks, particularly in Canada, have been shown to power economic growth. Lower rates of corporation tax are welcome but they do little to help smaller technology businesses which may not always be in profit.
“If the Coalition Government is serious when it says that it wants to rebalance the economy to promote exports and investment, then it should look again at Games Tax Relief. TIGA research shows that Game Tax Relief could create or save 3,550 jobs and increase and protect £415 million in new and saved tax receipts.””
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