The Chinese authorities should stop providing tax incentives to gaming companies, according to one of the local state media. The newspaper explains this by saying that Tencent and other major players have successfully entered the global market and no longer need state support.On August 5, the relevant material was published on the website of the Securities Times newspaper.
This is one of the largest economic publications in China, which is funded by the authorities.
The author of the column believes that instead of providing benefits, it is necessary, on the contrary, to raise taxes for large gaming companies. Their accumulated capital should be directed to public needs and used to solve more pressing problems in China.
“Chinese gaming companies have achieved global influence as a result of many years of development. If this trend continues, they can become world leaders and a key tool for promoting Chinese culture,” Securities Times believes.
According to the newspaper, local gaming companies should think not only about creating high-quality projects, but also work for the benefit of society.
Currently, China has a number of tax benefits for software manufacturers. VAT for this industry usually does not exceed 3%, which is significantly lower than the standard of 13% for other industries.
The Securities Times material appeared against the background of recent statements by other state-controlled media. At the beginning of the week, the Economic Information Daily called video games “electronic drugs”, which led to a drop in the shares of Tencent, NetEase and other large companies.
As a result, the tone of the material was softened, since the original text did not reflect the official position of the authorities on the regulation of the gaming industry. After that, the shares rose in price again and partially recovered the fall. However, Bloomberg notes that foreign investors are still concerned about the rhetoric of the Chinese media regarding the games.