At present, laptops, desktops, printers and other computer and ICT products are subject to a 5% duty. Finance Minister AHM Mustafa Kamal has proposed to repeal the tariff for the development of local industries in the proposed budget for the next 2022-23 fiscal year.
On Thursday, June 9, 2022, the finance minister made the proposal in the National Assembly in the budget for the fiscal year 2022-23 to waive duties and VAT in the public interest or for the protection of domestic industries.
According to the Finance Minister’s announcement, the VAT and tax exemption proposal may reduce the prices of some products. At present, laptops, desktops, printers and other computer and ICT products are subject to a 5% duty on computer equipment. In the proposed budget, the finance minister has proposed to withdraw the duty for the development of local industries.
On the other hand, importers have to pay 20% duty on those products. As a result, prices of local computer and ICT products may go down.
For the same reason, the prices of locally produced agricultural machinery and equipment may go down. Besides, special tax benefits are proposed in the budget for agri-entrepreneurs. The domestic car manufacturing industry is getting the benefit of VAT exemption. As a result, there is a proposal in the budget to waive 5% VAT along with duty exemption on import of machinery and equipment for making automobiles. As a result, cars made in the country will be available at a lower price.
