Computer dealers led by Bangladesh Computer Samlty yesterday urged the government to withdraw the newly imposed Value Added Tax (VAT) on the Import and sale of computers which has pushed up computer prices by nearly 16 per cent.

"The 15.59 per cent Increase of price caused by the Imposition of VAT in the new budget adds to the previous tax structure for computers under which we pay 28.61 per cent tax." said Bangladesh Computer Samlty President Mostafa Jabbar.

This means, we will now pay 44.20 per cent of tax In total. This is absurd. The government is practically discouraging the use of computers." he said in a press conference in the city.

Mostafa Jabbar noted that the revenue of the government from the computer sector was only Tk 12 crore but the sector had a tremendous potential of becoming a gigantic foreign exchange earner.

"Absurd taxation will only help a section of unscrupulous NBR employees to make undue benefits from the computer parts smugglers, but it will not increase the government revenue," he noted.

trying to convince the authorities concerned of the consequences of such a price hike.

"Its very sad that we had the impression from the government that taxes on computers

will be cut," he said.

Since 1993. Bangladesh Computer Samlty has been seeking the implementation of a number of demands including total withdrawal of tax and VAT from computers for a limited period of time, to popularise the use of computers.

The press conference was addressed, among others, by Secretary, Bangladesh Computer Society M Nuruzzaman, A H Chowdhury of ISP Forum and M H Rana of Bangladesh Computer Samlty.

Mostafa Jabbar said that some 35 countries had already Sthe Information Tech-

Agreement (ITA) under they would completely withdraw tax on information technology related products by 2000.

"This will further push Bangladesh to a worse position. Computer sector is the only sector which can put Bangladesh in a better position in development race. Just imagine, software export earned India over one billion dollars last year. If the government helps this sector. we can also earn by such proportions." he noted.

Our demand is total withdrawal of VAT, surcharge, im-a larger number of people can afford It." Jabbar pointed out. "This will have a long term positive impact in the economy of the country."