The Mexican government is in the spotlight with a new tax measure for video games. The country’s Chamber of Deputies has approved a comprehensive financial package that imposes an 8% tax on video games classified as violent. This proposal is designed to cover both physical and digital games sold, as well as in-app purchases. While not yet enacted, this move has sparked significant debate in the gaming world.
Gamers in Mexico will be upset by the additional 8% tax on violent games.
The new tax plan targets games in categories ‘C’ and ‘D’ of Mexico’s own video game age rating system. The ‘C’ rating covers titles deemed suitable for players aged 18 and over, with extreme violence, gore, and moderately graphic sexual content. The ‘D’ rating, on the other hand, is considered adult-only and is used for games that contain extended scenes of similar content. These classifications are similar to the “Mature” and “Adults Only” categories in the internationally renowned ESRB system.
The Treasury Department, which first presented this government tax proposal in September, based its justification on academic studies. The Department’s report claimed that “recent research has found a correlation between the use of violent video games and high levels of aggression among adolescents.” The report also noted that such games can lead to negative social and psychological effects, such as isolation and anxiety. However, it was noteworthy that a 2012 study cited in the report also mentioned the positive effects of video games, such as building motor skills and endurance.
This proposal, approved by the House of Representatives, will next be passed in the Senate. Following debate in the Senate, a vote is expected by the November 15th deadline for submission of the budget proposal. If passed by the Senate, the tax will take effect and lead to an increase in the prices of violent games in Mexico. It remains to be seen how this will affect both gamers and game developers.
What are your thoughts on Mexico’s tax initiative targeting violent games? Do you think there’s a connection between video games and violence, and is imposing similar taxes a good approach? Share your comments with us.
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