ISLAMABAD, June 15: The levy of 15 per cent general sales tax (GST) on computers in the budget 2006-07 would seriously affect the development of information technology (IT), therefore it should be withdrawn immediately.

This was stated by ICCI President Abdul Rauf, while speaking at a seminar on modern day business requirements here on Wednesday.

He said the government had replaced five per cent customs duty levied on computer hardware by 15 per cent GST imposition. “Pakistan is already far behind in the IT sector, and by imposing levy, IT sector’s progress will be effected, so the government should review this decision,” he added.

Munawar Iqbal, member Executive Body ICCI and president of Pakistan Computer Association, said only 15 per cent students were enjoying new computer technology in educational institutes. In these circumstances, if GST is imposed on import of computers, the local computer products’ rates will increase.

Asma Aziz, zonal chief of an international computer hardware company, said SMEs shared 40 per cent of Pakistan’s GDP and this potential could be enhanced by introducing computer technology.

It is imperative to acquire new technology to pass on business to the next generation, she said, and appealed to the government to announce incentives for computerisation.