Tax Hikes For Computer and Laptop - Budget 2025

 Government of Pakistan who in its budget 2024-2025 has decided to double the sales tax from 5 percent to 10 percent on computers and laptops. This is believed to contribute around Rs. 3 billion to the treasury, as part of the government’s strategy to increase government receipts in times of difficult circumstances. Proposing to raise the sales tax rates on these gadgets will only reduce the computer and laptops accessibility to the consumers while at the same time hindering the spread of new technology. It implies that there will be a dramatic shift in the way people are consuming products once such technology becomes out of the reach of the masses.

Thereby, the government expects higher revenue from this increased tax with lines into supporting public service and development projects. They think that such an approach fosters more funds and competes with the current popular market of computer and laptops.

This move could potentially be environmentally detrimental to Pakistan’s thriving IT industry. While other countries are bringing the price of IT technology within the reach of their populace, this tax imposition could potentially give a wrong signal and hinder the growth of the nation’s IT industry and make the use of technology products a luxury for the citizens.