UK gaming trade body UKIE is "pretty confident" the country's tax break proposal will be approved by the European Union and finally put into place, nullifying the doubts raised by the EU Commission over taxpayers contributing to the proposed relief.
Last year, the UK government approved the much-needed breaks for the country's ailing games sector, set to provide 25 percent tax relief on 80 percent of the budget for qualifying UK-made games. Then in April of this year, the European Commission put the proposal on hold by announcing an in-depth investigation, raising doubts over whether the relief was needed, and the potential for positive discrimination towards the UK and a resultant "subsidy race" between EU states.
Speaking to Joystiq, UKIE CEO Dr Jo Twist said her organization expects the proposal to be approved by the EU Commission despite those doubts, although there are apparent concerns over how long the process will take.
"I think we're pretty confident it'll go through," Dr Twist told us."We know that the [UK] government is 100 percent committed - across all parties, as well, there's 100 percent commitment to get this through. UKIE also approached other creative industries - so film, animation, and TV - and they wrote a letter of support to say 'we want the games industry to have tax credits just like we do now.'"
"We sort of weren't altogether surprised that [the European Commission] did this because the European Union is the European Union, and they have to go through these processes and ask the questions and make sure that they're asking the right questions," she added.