The Pakistani government released a budget modification for 2024-2025 that would double the sales tax on computers and laptops from 5% to 10%.
The effort is expected to bring in a surplus earnings of around Rs. 3 billion, expressing a tactical decision to boost state profits in the face of economic challenges.
The government’s choice to hike the sales tax on computers and laptops comes as it seeks to increase earnings.
The increase in sales tax will most likely result in higher prices for computers and laptops.
Affecting budgets for families and might hinder the adoption of new technologies.
Retailers and manufacturers may see a shift in consumer behaviour, such as purchase delays or a preference for less expensive options.
However, the industry may see a push for more value-added services to offset the increased costs.
This tax increase is expected to generate Rs. 3 billion in revenue, which will be used to support multiple public services and growth projects.
The government considers this initiative as an equitable strategy to meeting fiscal needs while capitalising on sectors with strong market demand.
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