Nintendo also raises prices in Russia due to the “Google tax”

Following Google, Nintendo announced its plans to change the prices of digital products in Russia due to the new law.

From January 1, a draft law comes into force, according to which foreign IT companies will have to pay value-added tax to the Russian State from the sale of digital content to Russian users.

In this regard, Nintendo plans to raise the prices of its products. From December 15, the price of those games in the Nintendo eShop that have both physical and digital versions will increase by 20%.

The tax rate for foreign companies, according to the text of the law adopted in the first reading, will be 15.25%.

The original of the law can be found here
Nintendo explains the increase in the cost of goods by 20% 16 days before the law comes into force as “a small correction related to the dynamics of the ruble against the euro over the past year and a half.”

For comparison: the weighted average euro exchange rate against the ruble for 2015 is 67.7 rubles, and the weighted average euro exchange rate against the ruble for 11 months of 2016 is 75 rubles.

In other words, the ruble has fallen in price against the euro. Based on this logic, it would be logical to drop the price, but not increase it. Taking into account the beginning of the festive period, when sales are usually arranged, the decision looks even more controversial.

Source: Nintendo