(Trinidad Express) PARENTS who could not afford a computer device for their children to participate in virtual learning may now be in a better position to do so, as all taxes on laptops, notebook computers and tablets have been removed.
Finance Minister Colm Imbert, in a Twitter post on Friday night, announced the measure which he said takes effect immediately.
Imbert wrote: “Yesterday, based on a submission from the Ministry of Finance, in keeping with the commitment given in our PNM 2020 General Election Manifesto, Cabinet agreed to remove all taxes on laptops computers, notebook computers and tablet computers. This measure takes effect immediately.”
The PNM manifesto states: “To facilitate the participation of young people in particular to the technological transformation, the PNM will empower, link, incubate, support, finance and accelerate access to funding, training and equipment for digitisation. We will remove all taxes on computers, mobile and digital equipment, cellphones, software and accessories.”
These devices were previously subject to 12.5 per cent Value Added Tax (VAT), as well as a seven per cent tax for online purchases.
While only laptops, notebooks and tablets are now immediately exempt from taxes, Imbert added that after the national budget debate is completed, taxes on other devices including mobile and digital equipment, cellphones and software will also be removed.
This is expected to take effect some time in December.
The announcement comes following calls from various sectors for taxes on computer devices to be removed, in light of schools moving to a virtual format for the first term of the 2020/2021 academic year.
On Friday, Opposition Leader Kamla Persad-Bissessar criticised the Government’s scrapping of the laptop distribution programme which had been introduced during her tenure as prime minister.
She said the Government had failed to put anything in place to give pupils access to technology, especially now with schools moving to a virtual format of teaching.
She called for immediate implementation of measures to ease the burden on parents and guardians who now have to purchase devices to facilitate online learning.
65,000 with no access
The move to online teaching and learning became necessary after a spike in Covid-19 cases forced the extended closure of schools.
The Ministry of Education says roughly 65,000 pupils have no access to devices or Internet connectivity to be able to participate in online learning.
Education Minister Nyan Gadsby-Dolly recently called on the business community to step in and assist by donating devices to such pupils. The ministry itself last week donated 168 Lenovo laptops for use by teachers and pupils in the Early Childhood Care and Education (ECCE) schools, as well as schools for special-needs pupils.
Last week, several business leaders indicated their willingness to lend a hand, but noted the taxes incurred when importing these devices were a hindrance.
Among them was president of the San Juan Business Association (SJBA) Vivek Charran, who said the association intends to assist and believes it is a good initiative.
Time to step up
Contacted yesterday, Charran said he was pleased with the announcement and expects to see corporate T&T step up.
“By doing this, it makes it more affordable for the business community to do what they can to try and access these devices to help schools in their areas,” he said.
He said many local stores would not be able to lower their prices, as they would have already paid taxes on their existing stock.
“There was a demand for computer devices so many people, particularly small and medium business, would have already brought down a large stock of it. So their problem now is they would have brought it down at a higher price and so they would be at a disadvantage now that taxes have been dropped.
“They would have had to pay 20 per cent more than anybody bringing in laptops now, including 12.5 per cent VAT. If they want to be competitive now, they will now be forced to drop their prices.”
Charran also called on the Government to address the delays experienced when clearing goods through Customs.
He noted that goods sometimes take weeks to be cleared.
“The reality is that even though they have done this, the logistics in buying the devices and getting them down, we are still looking at about a month before a difference could actually be made. The quickest way is to bring it in through courier services, but then there is that logistical difficulty with how long it takes to clear Customs. It will still be about a month before the device arrives in the hands of a child.”
There were differing reactions from parents to Imbert’s announcement yesterday, with some expressing support for the measure while others said the removal of the taxes would not make any significant dent in prices for parents with limited income.
Rachiel Ramsamooj, administrator of a parent support group on Facebook, told the Sunday Express the removal of taxes on computer devices was an excellent initiative.
“It would reduce the cost of devices by 12.5 per cent if bought locally, and almost 20 per cent if purchased online. This is assuming that the online purchase tax is among the taxes lifted. This will represent a significant reduction and go a long way to assist parents in purchasing these now essential items. It will also benefit parents with multiple children who would need more than one device, given the simultaneous conduct of online classes.”
Another parent said while the removal of taxes makes devices more affordable, there are still other challenges to consider.
“My concern is yes, they’re putting things in place for parents to purchase electronic devices for their children… but as a parent who works from morning to night, I am not able to supervise my children’s online activities.
“Also, with some parents’ salary they still cannot afford to purchase laptops or computers for their children… maybe a contract can be drawn up for parents to pay a monthly fee for computers provided by the ministry. Not everyone will have the $2,000-upwards fees for a new computer or laptop.”
Imbert clarified what he meant by “all” taxes yesterday afternoon.
“Computers are already exempt from Customs duty. This measure removes VAT and the OPT or Online Purchase Tax on laptops, notebook and tablet computers,” he told TV6. He could not be reached for further comment.
