President Jair Bolsonaro will again reduce taxes on game consoles in Brazil. The announcement, made on Monday (26) by social networks, states that the decision will be published in the Official Gazette (DOU) on Tuesday (27). This is the second time that the president has promoted a reduction in the IPI (Tax on Industrialized Products) for video games – the measure may affect the prices of launches such as the PS5 and Xbox Series X.
The reasons for the reduction, according to the president, are the complaints of the gamer community. During a live broadcast, Bolsonaro explained: “The kids last year decided to complain about the price of electronic games, chips, etc. And there was a tax step, and we managed to increase the highest step from 50% to 40%. And now the kids are back to sizzling again and with good reason. ”
With the new decree, the IPI becomes:
(a) from 40% to 30%: game consoles and machines;
(b) from 32% to 22%: parts and accessories for consoles and video game machines whose images are reproduced on a screen;
(c) from 16% to 06%: video game machines with built-in screens, portable or not, and their parts.
The reduction does not yet include electronic games themselves, as suggested by the president in early October.
Update September 29, 6 pm: after the measure involving the reduction of the IPI, Microsoft announced a price cut in the pre-sale of the Xbox Series X and Xbox Series S. The first reduced the price from R $ 4,999 to R $ 4,599 and the second went from R $ 2,999 to R $ 2,799. Both consoles will be launched in Brazil on November 10.
Dollar may still keep prices high
Despite the reduction in the IPI, the prices of next-generation consoles and accessories should still be high this year. In addition to other taxes, such as the ICMS and the Import Tax, the rise in the dollar and the economic crisis resulting from the COVID-19 pandemic are factors that directly influence the amounts charged to the final consumer.
So far, there have been no price reduction announcements for Microsoft and Sony releases scheduled for November. The Xbox Series X and S will reach the national market for R $ 4,999 and R $ 2,999, respectively. The PlayStation 5 is already in pre-order, for R $ 4,999 (PS5) and R $ 4,499 (PS5 Digital Edition).
It should be noted that there is a PEC (Proposed Amendment to the Constitution) in progress in the Senate with the objective of bringing the tax on consoles and games produced in Brazil to zero. However, its last move took place in August 2019.