Taxing used computers

Daggers have been drawn between the business community and the authorities after the latter spiked taxes on computers, laptops and their accessories and the former vowed to mount court challenge against the brainless move. The decision to raise taxes on vital ingredients of work and campus life could not have come at a more inopportune time when people sorely need tech gadgets to educate their children, work from home and attend conferences.

And the duty imposed is no small – $70-150 (equivalent to Rs11,000 to Rs24,000 approximately) on used imported laptops and $25-60 on CPUs, according to a notification from the Director General of Customs Valuation, Karachi. With the duty added, the starting price of used laptops will be nearly doubled – from Rs8,000-10,000 to Rs20,000 – and that of CPUs will increase from Rs3,000 to Rs10,000, say those associated with the business. New valuations for printers, auxiliaries and accessories of all origins have also been notified.

These pre-owned products – those that have been discarded by owners in the modern world mainly – cater to the requirements of a majority of people in our part of the world who cannot afford new tech gadgets. The rise in prices of these much-needed devices due to the imposition of duty will not only affect the student community, but will also hit the businesses across the country. The short-sighted decision to tax the business – which was booming due to the reigning Covid-19 pandemic – flies in the face of the government’s claims of providing ease of doing business.

The move will fall in direct conflict with the incumbent government’s Digital Pakistan Vision which aims at setting the country’s digital ambition at pace. Computers and other tech devices set at the heart of the Vision that is designed for both public and private sectors to work towards a digitally progressive and inclusive country.