Apply 10% VAT (VAT) tax in virtual India: Know its negative impact on economy and players

Eclesiar In the recent parliamentary session of the simulation, ‘Valat Tax Bill’ has been passed by 8 vs. 3 votes. Increased the rate of Value Added Tax (VAT) on all goods and services within the range of Virtual India under this new law 10% set done. The move taken with the aim of strengthening the government treasures can get serious and damaging results on the player-driven economy of the game.

The major losses caused by this tax growth are:

1. Heavy rise in inflation (Hyperinflation)

VAT (VAT) is a direct consumption that connects directly to the final price of items. Applying a high rate of 10% will make the necessary goods, raw materials and military equipment (Weapons & Food) expensive in the game markets. Common players have to spend more in-game currency than ever before to meet their basic needs.

2. Slump in Companies and Business

Businessman players running their factories and companies within the game (Entrepreneurs) have to bear the biggest loss of this tax.

  • The profit margin of the companies will be significantly lowered due to the cost price (Cost of Production).

  • Reducing profits will slow down trading growth, thereby reducing the speed of opening new companies.

3. Rising difficulties for new players (Newbies)

Eclesiar New players like MMO games have limited resources and less in-game currency at the beginning. Increased inflation in the market due to 10% tax will make it extremely difficult for new players to establish themselves in the game, open factories or buy strong gear. It can influence gaming experience.

4. Foreign Investment and Trade Loss (Trade Deficit)

Foreign traders and players can make distances from Indian markets if rates of tax in neighboring virtual countries are less than this 10% watt. They would prefer to trade from countries where tax is low, which could lead to a huge loss of international trade and revenue to the virtual India of the game.