As laptop prices skyrocket, Iran’s ICT Guild Organization has called on authorities to decrease import tariffs on the portable gadgets and other computer parts to help control prices and curb smuggling.
Currently, the import tariffs on laptops stand at 15% and the customs duty on computer parts is between 12-15% in Iran.
Chairman of the guild Hamid Tavasoli says that the organization is in talks with the government over the revision of the import tariffs, news website Digiato reported.
Over the past five years, the government of President Hassan Rouhani raised import tariffs on laptops in two phases, from 4% to 10% and later to 15%. The government says the higher customs duties is in line with its policy of “supporting for domestic production”.
The administration on both occasions had said it has plans to supply 70% of consumer demand in laptops via domestic production. The problem is that locally manufactured laptops simply do not exist!
Tavasoli says the organization has provided the government with precise data with reports on the current conditions in the laptop market and the consequences of the 11% increase in tariffs over five years.
Statistics show that the measure led to reduced laptop imports through legal means as large firms exited the business on the grounds that it was no more feasible. Smugglers were quick to seize the opportunity.
“The reports show that the objective of supporting domestic production of laptops by increasing import tariffs has not been realized, and rather it has cut imports through legal channels and increased the presence of contraband across the country,” he added.
The guild chairman stated that the new tariffs did not result in the domestic production and supply of the computers. He adds, “Due to the steep price increase, laptops have become unaffordable for many.”
Currently an Apple MacBook Pro is sold for 110 million rials ($2,410) in the local market while the same device is offered for $1,400 in the global market. Sony Vaio Pro 11 is sold for 60 million rials ($1,300), which is traded in the international market at $1,000.
The increased prices have had a significant impact on university students especially those majoring in science and engineering since they are must dig deeper into their pockets to get a decent laptop, which in the digital era is a compulsion for students.
It needs mention that the ICT sector and startups have been among the pet projects of the Rouhani administration. The growth in these and related sectors has often been backed by officials as the government’s strategy for curbing overreliance on oil industries. However, it seems that those in charge are oblivious to the fact that easy access to, and reasonable prices of, computers and laptops are essential for such business to grow and prosper.
