IAMAI bids for exemption of Basic Customs Duty on gaming consoles

 NEW DELHI, INDIA: The Internet and Mobile Association of India (IAMAI) has made an official representation with the government for reduction of basic Customs Duty and Additional Duties on gaming consoles in India.

IAMAI believes that contrary to India’s software development prowess, the development of console based video games is amongst the few areas of software development in which India still has a long way to go. The collective impact of the various elements of duties makes the price at which a console is offered to a consumer very high, thus becoming a major deterrent for the growth of the industry.

The duty exemption requested for the industry will enable growth that in turn acts as an enabler for associated sectors such as multimedia development and software companies which develop indigenous software and games that are compatible to the consoles.

According to Dr Subho Ray, President, IAMAI, “Our representation to the government essentially focuses on the issue that India has the potential to emerge as the next gaming software developing destination. In addition multimedia development companies can develop video and music that is compatible with gaming consoles. Subsequent growth in the industry will also help generate employments in a big way, not just in the gaming industry but also across affiliate sectors.”

Jaspreet Bindra, Regional Director—Entertainment and Devices Division, Microsoft India said, “We welcome the move by IAMAI to represent the Indian gaming industry before the government. The electronic gaming industry in the country is at a nascent stage and requires government support to grow and become an essential component contributing to economic development in the future. Duty exemptions on gaming consoles will help us lower prices significantly, thus making the product more affordable as a consumer entertainment option.”

Another factor that affects the industry is inroads of the grey market in the segment; exemption of duties and affordable prices will also help control piracy in the country which benefits all industry segments. The development of the electronic gaming industry is expected to contribute to the country’s growth in a big way and exemption from high Basic and Additional Duties will be a step in this direction.