UK Budget Plan Could Increase Digital Game Prices
Gamers in the UK could experience an increase in digital game prices in the future.
Thanks to a new budget plan being implemented Chancellor George Osborn, consumers could see the closure of an existing tax loophole that, up until now, has allowed for the cheaper sale of digital music, games, books and apps. The closure of the loophole will make it so the aforementioned digital products would now fall under the UK’s VAT which could raise prices by as much as 20 percent depending on how much of the cost is passed onto consumers. The changes will come into place on January 15th, 2015.
According to the text of the budget document, the loophole is being closed so that “services will be taxed in the member state in which the consumer is located.” This will bring a stop to company’s and services like Apple and Steam selling their products through countries with lower tax rates than the UK.
While the aim of this alteration is “to protect revenue,” it could have the affect of bumping digital game prices. For instance, a Steam game costing £34.99 could, in the future, cost around £37. This, of course, wouldn’t be the best of news for gamers.