China should scrap gaming sector tax breaks, state media argue

Cartoon decorations at the China Digital Entertainment Expo and Conference in Shanghai, China. 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. — Reuters

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.