Imported software likely to get costlier

The prices of imported software are set to increase after Finance Minister AHM Mustafa Kamal proposed to increase the import duty from 5% to 25% on imported software in the proposed budget for the next fiscal year 2023-24.

Moreover, a 15% VAT (Value Added Tax) has been imposed on the import of software as well.

As a result, customers will now have to spend extra money to purchase imported software, including operating systems, security software, etc.

The Finance Minister presented the new budget in the parliament on Thursday.

In his budget speech, he said, "Though 5% customs duty exists on a few software products, the majority of the software products attract 25% customs duty. To protect the domestic software industry and to prevent false declaration and duty evasion, I propose to impose 25% customs duty and 15% VAT on the import of software."