Proposal for imposing 30 percent duty on PC imports, Zero duty on parts and 5 percent tax exemption on PC production
After mobile, this time the government is going to take initiative to build a strong position in computer production in the country. As a part of this, the government expects the companies importing various brands of computers or laptops should start producing PCs inside the country as Walton is doing. To give this idea a shape It has been proposed to impose a 30 percent duty on importing PCs or laptops or their spare parts. On the other hand, it has been proposed to impose zero duty on the import of computer manufacturing equipment in the upcoming budget of the 2021-'22 financial year.
Taking the benefit of the change in tax structure, companies like Huawei, Dell, HP and Lenovo may be able to expand their PC market in the country with all the facilities of Hi-Tech Park by building factories through their distributors in Bangladesh just as Samsung has been manufacturing mobiles in Bangladesh. This is how the initiative was proposed by Posts and Telecommunications Minister Mustafa Jabbar.
To Digibangla- he said, 'Now robots are made in the country, expensive mobiles are being made. Now we want to be a computer producing country. That is why I have proposed to increase the duty on computers. I have asked to reduce the duty on the component to zero. I do not see any alternative to encourage computer production in the country.
It has been informed that a similar proposal like setting up a mobile factory in the country has already been sent to the Ministry of Finance and the National Board of Revenue (NBR) in the form of a DO letter (semi-official letter). Experts also see the possibility of passing the proposal as part of an increase in import duty in the ongoing corona pandemic.
And if this proposal is passed in the budget of the next financial year, the importers will have to import these computer products and spare parts with high tax if they do not produce. That is why in the budget (2021-22) it has been proposed to impose 30-32 percent duty on import of computer and spare parts.
On the other hand, those who will assemble or manufacture these devices in the country will have to pay less tax. Besides, the way Walton is now getting export incentives by exporting PCs and laptops to 5 countries of the world besides the country, they will also get it. At the same time, they will get all the facilities of the high-tech park.
According to sources, manufacturers of computers and spare parts will get maximum exemption in terms of tariffs and taxes in the proposed structure with the help of computer and laptop production in the country. And those who will import and assemble the parts will get the benefit of duty and tax at a relatively low rate.
Incidentally, in the 1998-99 financial year, the then Awami League government withdrew the import duty on computer products. And since then till now this sector is free from duty and tax. However, the then BCS president Mustafa Jabbar, who led the movement for duty exemption on computer imports at the time, is now the government's post and telecommunications minister. He is also working hard to take this process forward to achieve the country's capability in computer production after mobile phones. Even before last year's budget, he had voted in favor of raising tariffs at the import level.
He hoped that this year's budget would reflect his wish in terms of implementing Prime Minister Sheikh Hasina's vision of achieving self-sufficiency in digital Bangladesh.
