GST-hit gaming platform WinZo forays into Brazil
Says gaming cos can’t sustain 400% hike in indirect tax; Brazil levies indirect taxes such as 2-5% as municipal tax, applicable to the commission earned by company
Home-grown vernacular social gaming platform WinZO on Thursday announced the launch of its app in Brazil, as gaming companies in India feel threatened by a massive 400 per cent hike in GST. WinZO will invest $25 million in Brazil in distribution and branding for more than 100 partner game developers.
“We have built a tech stack that caters to over 150 million young users from Bharat today and can be scaled across the world,” said Paavan Nanda, Co-founder of WinZO.
The decision to enter the Brazilian market is driven by a strategic approach to diversify and address challenges posed in India to all the companies by the 400 per cent hike in GST in India, said the company.
This move will help the platform’s partner game developers export games such as Carrom, Chess, Car Race etc, and gain free access to Brazil, the fourth-largest mobile gaming market with over 90 million users. The partner game developers will get access to the new market and users without any cost of technology, marketing, and distribution, said WinZO.
