If you are planning to buy a new laptop, PC, hardware or battery parts, you are in luck. The Pakistani government has announced a huge tax relief for these items in the annual budget for 2023-24. This is a great opportunity for freelancers, gadget lovers, and IT businesses to save money and upgrade their technology.
Tax relief on laptops and PC parts means that there will be no sales tax for laptops, personal computers, notebooks, computer parts and other related devices. The same goes for some parts of lithium batteries which are used in many electronic products¹.
The tax relief also applies to software investments, as long as they have a long-lasting value and are registered with the Pakistan Software Export Board (PSEB)². The software exporters can get a concession on the imported goods equivalent to 1% of their export proceeds of the previous financial year.
The tax relief is valid for three years, from 1 July 2023 to 30 June 2026. It will help reduce the cost of these items and make them more affordable for everyone.
The tax relief is available for both businesses and individuals who need laptops and IT equipment for their work or personal use. This includes freelancers, self-employed workers, small and medium enterprises, and large corporations.
The government has said that this tax relief will help create jobs, increase productivity, and foster innovation in the IT sector. It will also help reduce the digital divide and improve access to technology for everyone.
To claim the tax relief, you need to keep records of the laptops and IT equipment you buy and use for work purposes. You also need to make sure that there is no significant private use of the equipment, such as gaming or personal browsing.
The tax relief can be claimed through your annual income tax return or your corporation tax return. The government has advised that you should consult a professional accountant or tax adviser for guidance.
The government’s tax relief on laptops and PC parts is a welcome initiative that will benefit many people and businesses in Pakistan. It will also help boost the IT sector and support the digital transformation of the economy.
