Fresh 15% VAT proposed on imported laptops and computer accessories

The government has proposed a fresh 15 per cent VAT (value-added tax) on imported laptop computers and computer accessories for FY2022-23 in an effort to promote locally-manufactured electronic products.

Finance Minister AHM Mustafa Kamal made the recommendation while proposing a Tk 6,78,064 crore budget for the next fiscal year in parliament, which is Tk 74,383 crore more than the last budget.

“Laptop computer imports are subject to VAT exemption. As a result, domestic computer manufacturers are facing uneven competition. So, I am proposing to impose a 15 per cent VAT on laptop computer imports,” he said in his speech.

As a result, the total tax on imported laptop computers will be 31 per cent.

The minister also proposed a fresh 15 per cent VAT on computer accessories at the import stage, which are currently exempted from VAT.

The products include computer printers, toner cartridges/inkjet cartridges for computer printers, and portable automatic data processing machines, weighing no more than 10 kg, consisting of at least a central processing unit, a keyboard, and a display. To promote “Made in Bangladesh” branding worldwide and to protect the investment of domestic manufacturing industries, I am proposing to withdraw the concessions on the import of printers and toner cartridges. This will help local manufacturers reach the target of exporting digital devices, he said.

For the protection of domestic computer/laptop and ICT product manufacturers, I am proposing to expand the concession facility for the import of raw materials for computer accessories and the ICT industry, he added.