Laptops may be cheaper in FY2025

The government is planning to reduce duties on imported laptops next fiscal year in order to make the devices more affordable and bring relief to freelancers and students.

According to finance ministry sources, the move is aimed to boost freelancing activities and support the software manufacturing industry.

Currently, importers are required to pay a total of 31 percent in import tariffs and taxes, including 5 percent as customs duty.

However, the National Board of Revenue (NBR) is seeking to reduce the total duty and taxes to 21 percent for the next fiscal year.

The revenue authority wants to hike import duty to 10 percent but exempt 15 percent VAT at the import stage, said an official of the finance ministry, seeking anonymity.

Finance Minister Abul Hassan Mahmood Ali is likely to unveil the plan on June 6, when the budget for fiscal year (FY) 2024-25 will be revealed.

"Due to the gradual hike in the price of US dollars and the existing tax structure, prices of imported laptops have gone beyond the purchasing limit of general consumers," the official said.

As a result, imports of counterfeit or refurbished laptops have increased significantly.

The NBR plans to reduce the overall duties to facilitate the implementation of the government's vision for a "Smart Bangladesh" and ensure the availability of laptops at affordable prices, he added.

Subrata Sarker, president of the Bangladesh Computer Society (BCS), welcomed the move.

"If it really happens, the price will definitely reduce at the consumer level," he said.

He added that they had demanded the removal of the 15 percent VAT at the import stage on laptops and printers in the budget proposal for FY25.

The NBR imposed the 15 percent VAT in FY23, according to the budget proposal of BCS.

The move, which is in line with the government's vision for a "Smart Bangladesh", will help consumers as almost 100 percent of the demand for laptops is met through imports, Sarker added.

In the July-February period of fiscal 2022-23, letter of credit (LC) openings for computer and IT accessories stood at $136 million and its settlement was $196 million.

However, Sarker also urged the government to extend the existing tax exemption on the IT and ITES sectors, which is scheduled to end in June this year.

"We have proposed to extend the exemption by at least five years," he said.

However, the latest mission of the International Monetary Fund prescribed the NBR to end such exemption facilities.

Meanwhile, NBR officials met with Prime Minister Sheikh Hasina last week to get the nod for the budget proposals and presented the issue of tax exemptions before her.

"The premier did not instantly respond to the proposal," said a senior official of the NBR, seeking anonymity.

"The tax benefits may be lifted phase by phase," he added.

Yesterday, Salman F Rahman, private industry and investment adviser to the prime minister, also addressed the issue of the tax exemption for the IT and ITES sector, saying that he expected it to continue for a few years.