IAMAI bids for exemption of Basic Customs Duty and Additional Duty on gaming consoles

New Delhi: 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.