High import dues, intricate business atmosphere prompts Nintendo to stop sales in Brazil

Videogame giant Nintendo Co. Ltd. has stopped sales of its games and consoles in Brazil due to high import taxes and intricate business atmosphere in the country.

Nintendo’s GM in Latin America has said that the current [business] model was not sustainable and Nintendo has intended to give up on its sales, but will not give up entirely on Latin America’s most robust economy. The company will think over its next move.

Brazil commands high import taxes, costs and prices for Nintendo products in Brazil “[which] did not make sense,” van Zyll told to local newspaper O Globo.

The company’s popular Super Smash Bros. game was recently on sale in one of Brazil’s top online commerce sites which is Americanas.com.br and it is priced at $74 (almost 20% greater than the $60 price in the US).

Nintendo does not produce the games in Brazil and the company’s move will not affect other countries in the region, which have separate distributors.

Brazil fared poorly in “ease of doing business” category by the World Bank Group this year as it only ranked 120 out of 189 countries though it improved three notches higher compared with last year. In terms of “paying taxes” category the country scored the lowest score.

The World Bank said that it takes around 2,600 hours per year to comply with the Brazilian tax code, compared with the combined average of 366 hours for all of Latin America and the Caribbean and way below the 175 hours overall average registered by developed countries.

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