IT tax cuts yet to lower device prices

Nearly a month after the government slashed duties and taxes on laptops, desktop computers, printers and computer monitors by more than half, retailers have yet to reduce prices, saying it will take at least another month before consumers benefit from the tax cut.
In the FY2026-27 budget proposed on 11 June, Finance Minister Amir Khosru Mahmud Chowdhury announced the withdrawal of import duty, regulatory duty, supplementary duty and VAT on laptops, desktop computers, servers, printers and computer monitors to make digital devices more affordable and accelerate the country’s digital transformation.
The national budget, passed by Parliament, reduced the total tax incidence (TTI) on these products to 9.5% from 20%.
However, visits to Multiplan Computer City in Elephant Road and IDB Bhaban in Agargaon found that laptops, desktop computers, servers, printers and computer monitors were still selling at pre-budget prices.
Riad Hasan, who travelled from Keraniganj to buy a laptop, said he had expected prices to fall following the tax reduction.
“I thought the prices would decrease after the government reduced VAT and taxes on IT products, but the reality is different. The products are still being sold at the previous prices,” he said.
Partha Chandra Singh, sales and marketing executive at Star Tech, said the company had not revised its prices since the budget announcement.
“We sell products at the prices fixed by the company. There has been no change in prices, so we are still selling them at the previous rates,” he said.
Retailers said many customers are aware of the tax cuts and frequently ask why prices remain unchanged.
Abul Bashar Rasel, a sales executive at Ryans, said retailers cannot lower prices because their current inventories were imported before the new tax rates took effect.
“Customers regularly ask about price reductions, but we cannot reduce prices because the products were purchased before the budget announcement,” he said.
Importers said the lower tax rates became effective on 1 July and that consumers would have to wait until newly imported consignments reach the market.
Sanjoy Sarker, general manager of Global Brand, said all products currently on sale were imported before the new tax structure came into effect.
“The new VAT and tax rates have been applicable since 1 July, but the products now in the market were imported earlier. Prices will decline after new shipments arrive, which may take at least a month,” he said.
Consumers, however, argued that tax reductions alone are insufficient to make digital devices more affordable unless the government ensures the benefits are passed on to buyers.
Shuvo Islam, a freelancer, urged the government to strengthen price monitoring.
“Sellers claim the products were imported before the tax cut, but customers have no way to verify that. The government should introduce a system allowing buyers to check when a product was imported so they can benefit from the reduced taxes. Developing such a system would not be difficult; it only requires a policy decision,” he said.