FBR mulls Rs3,000 import duties on laptops, desktops

ISLAMABAD: The Federal Board of Revenue (FBR) is reviewing a proposal to slap import duties of Rs3,000 on laptops and desktop computers in the upcoming 2015/16 budget to increase revenues and discourage illegal imports, an industry official said on Tuesday.
“Illegal import business will lose charm after imposition of the fixed tax rate,” said Munawar Iqbal, chairman of Pakistan Computer Association (PCA) during a meeting.
Around 420,000 laptops are imported every year and in which only 35 percent (or 147,000 laptops) are imported legally. On legal imports, the government’s revenue doesn’t exceed Rs1.146 billion.
Iqbal said a common consumer is forced to pay 30 percent additional price in the form of various taxes, including 17 percent general sales tax, three percent advance tax, six percent income tax, one percent custom duty and up to three percent other miscellaneous charges, on computer and other accessories.
Because of this, they have to resort to illegitimate channels, like smuggled items, for buying, he added.
PCA chief said the fixed tax of Rs3,000 on laptops will certainly discourage smuggling and at the same time provide low income groups with affordable notebook.
This win-win situation (for buyer and seller) will result in a considerable increase in the revenue to the tune of Rs1.26 billion, he said.
Iqbal said it will get another Rs1.8 billion in tax revenue from desktop computers, which have 600,000 annual market.
This will remarkably increase the IT industry’s share in the national economy, he added.