ISLAMABAD: The computer vendors industry has strongly proposed a fixed tax scheme for all computer retailers dealing with IT parts and products to register all retail IT businessmen under the documented regime and generate additional revenue from 2021-22. On the behalf of the Pakistan Computer Association (PCA), Munaw-war Iqbal submitted viable budget proposals to the Federal Board of Revenue (FBR). The association proposed that the use of computers and laptops have increased manifold in the academics, research institutions and workers for a learn-from-home plan and for work-from-home plan by almost all public sector organisations in the country, especially during the previously held long lockdowns in the country.
But the IT sector is the most-affected one due to the sudden hike in the valuation of old and used computers and laptops up to 50 to 500 percent, which has become a serious issue for the business of thousands of computer retailers, while the laptop and computers are already exempt from the GST but the computer parts fall under the general sales tax scheme.
The IT sector demands withdrawal of import duty on used computers to save IT industry from closure, Munawwar Iqbal stated.
While the used computers are in high demand among students, researchers and workers, they are finding it difficult to purchase a used computer at affordable price causing huge loss in IT business and thousands of its workers facing unemployment.
The government should offer a fixed-tax formula for IT industry of a minimum monthly tax of Rs5,000 for all computer retailers dealing with IT parts and products to bring them under a fixed-tax net program, which will not only bring thousands of retail IT businessmen under the documented economy but would also generate millions of rupees as revenue to the government, he suggested.
The government should initiate rationalisation of taxes vis-à-vis the computer assembling industry, which will bring about a revolutionary change in the growth of information technology making it accessible to the consumers at their doorsteps, particularly, the youths and vulnerable people.
The government should expand the computer assembling industry through a business-friendly environment by allotting it a particular economic tech-zone for manufacturing and assembling IT products to make it a powerful exportable sector and enabling it access to international markets.
The government should announce tariff-free exemption for a period of five years for IT foreign investors, so that they are better able to manage and plan their investments.
Copyright Business Recorder, 2021
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