Pakistan Computer Association (PCA) has asked the new government to abolish 15 percent sales tax on computers and its accessories in the coming budget, as the levy has drastically brought down the imports of personal computers/servers during current fiscal.
Munawar Iqbal, President of the PCA said here on Sunday that the issue was brought up during a meeting of executive body of the association. He said that the unprecedented decline of Pakistani PC/Server market is a matter of grave concern for the local computer industry.
He said that the recent report of reputed "Springboard Research" has reflected dismal situation of the industry. It says that the annual growth rate of PC/Server market in Pakistan has declined to 9.6 percent in 2007 against 16.4 percent in the previous year. He said that the Springboard's data also indicated that the market slowdown was on account of increased political unrest and instability in the country including 15 percent sales tax on the said items.
According to him, total imports of PCs/Servers was 6,30,000 units during 2006-2007, which dropped significantly to 1,49,000 in December, showing a decline of 40 percent.
The president of PCA added that had there not been imports under vigorous expansion, automation, strengthening of infrastructure and technological up gradation programme by the banking, financial, telecom and education sectors and introduction of e-government these figures would have been more depressing. Since the imposition of 15 percent GST on computers and computer accessories, he said, matter was raised with all the relevant high-ups but no action has been taken so far.
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