Experts in the information technology industry have opposed the imposition of a five per cent excise duty on laptops and notebooks in the budget for the fiscal year 2024/25.
During an interaction organised by the Computer Association of Nepal Federation (CAN Federation) recently, industry leaders urged the government to immediately reconsider this decision.
Ranjit Podar, president of the CAN Federation, expressed concern that the excise duty would increase laptop prices in Nepal, negatively impacting various sectors, including ICT.
“We request the government to withdraw this step as excise duty is imposed on devices indispensable for the development of information technology sector,” he stated.
Given the government’s recent initiatives to support the IT sector, Podar also pointed out that the excise duty sends a conflicting message. He warned that the new measure could disrupt and promote the grey market of laptops.
Suresh Lohani, Managing Director of IT company Mega-Tech, criticised the government’s paradoxical approach. “Despite policies encouraging the IT sector, making notebooks and laptops more expensive discourages official distributors,” he noted.
Naveen Joshi, CEO of Mercantile Pvt. Ltd. and Treasurer of CAN Federation, opined that the excise duty imposed on essential IT items would make the market less accessible to the general public.
Saroj Khatri from Generation Next Computer Pvt. Ltd. accused the government of promoting low-quality and stolen goods by imposing additional taxes on technology products.
Former CAN Federation presidents Sureshraj Karna and Vinod Dhakal called for the government to foster an investment-friendly environment instead of imposing taxes on the IT tools.
Umesh Raghuvanshi, vice president of the CAN Federation and CEO of IT company Info Developers, criticised the government for not investing in the IT sector while seeking more revenue through excise duty. He also highlighted the lack of initiatives to promote the use of Nepali software within the country.
CAN Federation General Secretary Chiranjeevi Adhikari said that additional excise duty would affect various sectors, including education, health, tourism, finance, IT, and hospitals. To create a technology-friendly society, it is necessary to have encouraging policies for importing essential devices like laptops,” he stated.
