The National Board of Revenue (NBR) has released a statement scrapping VAT from all computers and computer accessories. According to the statement, import duties in excess of 2% of the original prices of the stated computers and related items and any other supplementary taxes are cancelled.
From now on, there will be no more import duties or VAT on any computer. With this circular, all complexities regarding computer taxes have been resolved.
Md. Nojibur Rahman, Secretary of the Internal Resources Division of the Ministry of Division, signed the directive on February 15.
According to the NBR directive, VAT and import duties have been scrapped from the following computer items: printers, toners, inkjet cartridges and other printer components including printer ribbons, modems, Ethernet cards, network switch, hub and routers; database, operating systems, development tools, magnetic media, unrecorded optical media, anti-virus software, flash memory cards, proximity cards; data processing computer monitors and monitors smaller than 22 inch.
VAT on all computer related items were scrapped during FY 98-99. However, there were no specific laws at the retail level. Computer product dealers were paying a lump sum ‘Package VAT’ of BDT 11,000 annually. According to a letter by the NBR all businesses were asked to pay a VAT of 4% on all computers and computer products sale.
Abu Hanif Md. Mahfuzul Arif, President of Bangladesh Computer Samity, said, “The confusion over retail taxes has been eliminated with this directive. From now on, all taxes on computers and computer related items have been scrapped.”
Mustafa Jabbar, former President of Bangladesh Computer Samity, views this decision as a milestone. He said, “The young generation will benefit from this.”