KATHMANDU: The Computer Association of Nepal Federation (CAN Federation) has urged the government to reconsider the excise duty imposed on laptops in the budget for the fiscal year 2081/82. During a meeting held on Tuesday, the federation requested the government to reevaluate the 5 percent excise duty on laptops.

CAN Federation President Ranjit Podar stated that this tax hike would raise laptop prices in Nepal, negatively impacting various sectors, including ICT.

"Excise duty, typically imposed on items harmful to human health, has now been applied to laptops and notebooks. We urge the government to reconsider this as these devices are crucial for the development of information technology," he said.

He also mentioned that increasing the excise duty on laptops contradicts the government's new programs for the information technology sector, giving the wrong message.

"If a laptop costs Rs 100,000, the VAT is Rs 13,000. With the additional five percent excise duty, the total price will be Rs 118,000," CAN President Podar explained. "Consumers will be the most affected, and this move will likely promote the grey market for laptops, leading to further market disorder."

President Podar highlighted that the lower prices in the grey market discourage official distributors, further complicating the issue. "Therefore, the government must reconsider this step," he emphasized.

Similarly, CAN Federation General Secretary Chiranjeevi Adhikari expressed concerns that this policy will directly impact various sectors, including education, health, tourism, finance, IT, and hospitals. He added that to foster a technology-friendly society, it is essential to have incentive policies for importing crucial devices like laptops.