The Government of Pakistan has proposed to double the sales tax on computers and laptops from 5% to 10% in the budget for 2024–2025. This change is expected to raise an extra Rs. 3 billion in revenue, as part of the government’s efforts to boost government earnings during tough times.
Increasing the sales tax on these products will likely make computers and laptops more expensive for consumers and slow down the adoption of new technology. There will be a huge change in people’s buying patterns as technology becomes more inaccessible to the people.
The government hopes that the additional revenue from this tax hike will support public services and development projects. They believe this approach balances the need for more funds with the strong demand in the computer and laptop market.
This move could hurt the growth of Pakistan’s IT sector. While other countries are making technology more affordable for their citizens, this tax increase could negatively impact the country’s IT sector and make technology less accessible.
