9 articlesMexicans who are hyped for the upcoming GTA 6, alongside other games like Call of Duty and Battlefield, might have to pay more to purchase those games, unfortunately.
Just a few days ago, the Mexican government has approved a financial package that proposes a special 8% tax on video games that are classified as “violent, explicit, or adult content.”
Sadly, games like Call of Duty, Battlefield, and GTA 6 are classified as such.
According to the proposal, the tax will aim to reduce the demand for such games and make gamers think twice about their choices.
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The proposal aims to put certain games that are rated C and D in the same category as tobacco and high-sugar drinks.
Early on in September, the proposal claims that “recent studies have found a relationship between the use of violent video games and higher levels of aggression among adolescents, as well as negative social and psychological effects such as isolation and anxiety.”
However, critics pointed out that such claims were based on outdated information that were scientifically unfounded.
Once the proposal gets approved, it would mean that games either digital or physical will be affected. As for free-to-play games, the tax would apply to microtransactions and in-game purchases.
How the Tax Works
As mentioned, the core justification for this proposal is the link between violent games and aggressive behavior.
However, there’s no conclusive evidence to support it. In fact, various studies both local and international tried but found no such connection. The Mexican government only based their proposal on a single academic article.
This move caused many to believe that if the government believes violent games can cause harm, then it should ban them instead of make money from them.
So, what exactly happens when the tax gets implemented?
For starters, it would significantly impact the sales of video games that are categorized as “violent”. Second, since there’s already an existing 16% VAT, an 8% tax would mean gamers will have to pay 24% more when buying such games.
For example, if a game is currently priced at MX$116, it would now be priced at MX$124.
If foreign platforms like PlayStation and Steam won’t comply, the Mexican government will temporary suspend internet access to these platforms throughout the country.
Moreover, higher game prices will lead to fewer sales. This could mean that the government will end up getting lower overall tax revenue in return.
At the same time, it would make Mexico a far less attractive market for game publishers and publishers.
It’s worth noting that the proposal is still subject for approval. The Congress of the Union set a deadline until November 15 to decide whether to approve the proposal or not.
If it does get approved, then popular game series like GTA, Call of Duty, Battlefield, and Mortal Kombat will be more expensive for Mexican players.
As of now, the draft isn’t clear on how it will tax things like DLCs, subscriptions, and microtransactions. The Senate will have to clarify these before the tax gets implemented.
