President Jair Bolsonaro issued a decree on Wednesday (11) reducing the IPI (Tax on Industrialized Products) on electronic games, the Planalto Palace reported. According to the government, this is the third time that Bolsonaro has determined the reduction of the IPI on these products.
With the new decree, the tax on consoles and video machines drops from 30% to 20%. Parts and accessories, in turn, had their tax rate reduced from 22% to 12%. Video game machines with built-in screens, which currently pay 6% of IPI, will be exempt. The zero rate applies to portable or non-portable equipment.
According to the government, the tax relief will result in a drop of R$15T 82.8 million in revenue in 2021. Next year, the estimated loss in revenue is R$119.5 million. The measure comes into effect immediately.