Homemade TVs craze
Sunday, May 2, 2010
In the modern age, life is nothing without the use of new technologies that have become one of the major sources of increasing foreign reserves of the country. Experts always strive to introduce latest technologies in IT sectors and explore something new in this regard. As the technologies advance from time to time, your visions improve.
Undoubtedly IT sector is blooming across the world and Pakistan is no different. Countries including USA, England, Canada, Malaysia, Japan and Singapore are producing computers and other IT equipments while countries like Pakistan have become one of the biggest markets in the world where second-hand computers along with brand new computers are being dumped for sale. But the major problem in Pakistan is tax evasion during the import of IT products. These products are being imported without paying any taxes as government has provided relaxation in this regard.
With the bloom of technology in Pakistan, the traders of the electronic goods are using the LCD-monitors as televisions because the monitors are cheaply available across the country and the LCD-monitors can simply be converted into television by adding devices like Sunwil, Gadmey, Dany and xPod. Commonly there are two types of the LCD-monitors that are being sold in the markets. One has extra-device called magic box while the other is being imported from China with the company fitted device that can be used both as a computer and a television.
The devices are accessible in cheap prices ranging from Rs.1200 to Rs.2400 while customers have both options whether he wants to get with warranty or without warranty. As a matter of fact all these are imported from China. The sale of LCD-monitors is increasing because of their affordability. The 15-inches LCD-monitor can be bought at prices between Rs.5500 and Rs.6500. These LCD-monitors are transformed into televisions in Pakistan by fitting these devices that are given a warranty. The company fitted ones do not have warranties as these are imported from China and are not branded. The prices of these are around Rs.9500.
Pakistani traders are importing almost all the multinational electronic products of famous brands like Dell, Compaq, Samsung, Phillips, Sony, Acer, Hp, Siemens etc because foreign made LCD-monitors are the ones that are more reliable.
Arshad Bhatti, Pakistan Customs officer, informed about the import of the branded computers and LCD-monitors. “Earlier the traders were importing branded computers and other parts but they were not liable to pay taxes because our basic objective was to provide technology to the common man at cheaper rates. In this way the traders enjoyed duty free imports and made billions through this business. Government was also appreciated for this effort as no taxes were imposed,” Arshad explained.
“Few years ago the traders used to import branded duty free computers in the name of technology dissemination across the country. But now these LCD-monitors are being converted into LCD-TVs with the help of additional home-fitted devices. Meanwhile most of the customers prefer to purchase LCD-monitors as TVs because these are cheaper as compared to the brand new TVs and China made LCD-TVs. Quality wise these homemade LCD-TVs are better than brand new and China made TVs,” he was of the view.
“Now the government is planning to charge direct and indirect taxes on the import of bulk LCD monitors. If anybody imports a complete set of the branded computers with LCD-monitors, CPUs, keyboards and other computer’s accessories, tax relaxation is still provided. But if the traders want to import LCD-monitors in bulk quantities then one has to pay General Sales Tax, income tax, customs along with 2 percent VAT. FBR and Ministry of Finance monitors all these shipments,” Arshad maintained.
Sunday plus talked with many customers and vendors about the LCD-monitors. “This option is very good for the general public because these LCD TVS can easily be purchased at cheaper prices and are of superior quality than the local and China made TVs. Because of the enhanced quality, customers prefer to buy it,” Munir, vendor of Hall road, said.
Zulfiqar, a local customer, said while purchasing the LCD-TVs, “Today everybody in the country is spending less money in the wake of worldwide economic slump. The LCD-TVs are affordable right now because its prices are cheaper and qualities are comparatively better than any brand new TV which is why I have preferred it.
According to a survey conducted by the Sunday plus, the LCD-TV business is flourishing and most of the customers are lured to buy it. While many traders import LCD monitors in bulk by evading taxes, but in reality these LCD monitors are converted into televisions and sold as televisions. Due to this practice the vendors are minting billions and government are losing billions.
Labels: China, LCD, Monitor, TV
posted by Dilshad Rao @ 9:13 PM,
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