China Should Scrap Gaming Sector Tax Breaks, State Media Argue
- Gaming companies are now global players, Securities Times says
- Investors are nervous about an impending government crackdown
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China should stop handing out tax breaks to gaming companies because they’ve become global players that thrive on their own, a government-backed newspaper said, fanning uncertainty about a potential crackdown on Tencent Holdings Ltd. and its peers.
Local governments should cut off incentives for gaming companies that were introduced in the past to encourage the development of a domestic software industry, the Securities Times wrote in a commentary piece. In fact, they should assume more responsibility and give back to society via higher taxes, the Shenzhen-based newspaper, one of the country’s main financial outlets, said.