The government has levied taxes on mobile phones and laptops in its mini-budget.
These taxes include:
- 17% tax on mobile phones, valued at $200 to $500
- 17% tax on imported machinery for cellphones manufacturing
- 5% tax on laptops
Why it matters: During the pandemic, the tech ecosystem really accelerated, and this decision may negatively impact its further growth.
Mobile phones and laptops are essential tools freelancers, startups, etc., need to be productive and add value.
In the long run, this boosts the economy.
The manufacturing industry will also think twice about investing in technology.
Zoom out: With the new Covid variant spreading like wildfire, it is essential that the government re-evaluate the situation and not add to the problems that the new variant might bring to technological access and advancement.