If graphic card (GPU) shortage and the depreciation of Rupee wasn’t enough, the Federal Government is increasing the duties and taxes on import of graphic cards (GPUs). According to the details, the new taxes and duties will be applied to graphic cards (GPUs) based on their specifications.
The market was just starting to recover with the price of graphic cards (GPUs) in Pakistan starting to come down after being sold at ridiculous rates. However, the situation is about to get even worse as the Federal Government has decided to impose heavy duties and taxes on the import of graphic cards into the country.
It is pertinent to mention that graphic cards (GPUs) had no Valuation Ruling (VR) or Assessment Guidelines in the past. However, that is about the change as Pakistan Custom has given details on how these new taxes and duties will be assessed on the import of GPUs.
According to the details, the value of graphic cards (GPUs) will be assessed based on the VRAM capacity and a 36% regulatory duty will be charged after converting the price into Pakistani Rupee based on the exchange rate when they are imported into the country.
Graphic Card (GPU) Value Assessment
|GPU Capacity||Assessed Value in USD|
This is the official notification issued by the Collectorate of Customs, Jinnah International Airport, Karachi:
How Duty and Taxes Will be Calculated?
According to the details, the Assessed Value of the Graphic Card (GPU) will be converted from USD to PKR based on the current exchange rate and a 36% duty/tax will be applied on the converted value. For instance, an 8GB card will be assessed at $196 and converted into Pakistani Rupee by multiplying the USD amount with the exchange rate (Rs. 214.95 on 18 August 2022).
The local value of the card will come out to 196×214.95=42.130.2 and a 36% duty/tax will be charged on this amount which will be calculated at Rs. 15,167 (the value comes out by multiplying the local value (Rs. 42,130.2) by 36 and dividing by 100). This means that duty/tax charged on an 8GB graphic card (GPU) will be Rs. 15,167.
Do you agree with the Government’s decision to impose these heavy duties and taxes on graphic cards (GPUs)? Let us know in the comments below.
Read more: Govt Officially Lifts Import Ban on Luxury Items.