What he had expected to be a thrilling day was not turning out as planned for high school student Hailmikael Adugna. A computer technician in his spare time, Hailmikael had just purchased a used HP laptop at Green Teck Computer Shop for 8,000 Br.

Hailmikael, who started providing door-to-door computer maintenance services a year ago, had decided to buy a laptop to help him with his education and also his aim of developing a website to promote his business. But upon arriving at the the shop in Megenagna on September 19, 2019, he was shocked to learn that the price of laptops had risen immensely, so he visited three other shops to compare prices.

He found the price spike everywhere he looked. "The price wasn't as I expected before,”  said Hailmikael.

But due to the requirements of his business, he reluctantly forked over his savings.

Many besides Hailmikael have witnessed the sudden price increase in the laptop market in the past six weeks, according to retailers.

Everyone agrees that it arrived after the revised customs tariff issued by the Ministry of Finance imposing a 15pc tax on used and new computers. The amended customs tariff was enacted starting from August 2019.

The tariff revision came about with the main aim of increasing revenues. In this fiscal year, the government targets to collect 253 billion Br from domestic tax revenues, which is expected to cover 65pc of the federal budget.

Under the tariff book of the country, there are six duty tax rates ranging from zero to 35pc, which are applicable based on the goods imported.

The range varies in order to encourage the importation of some goods by imposing the zero tax rate and at the same time to discourage the import of selected goods by imposing a higher tax rate.

The global laptop market was valued at 101.7 billion dollars in 2017. Growing internet usage, rising disposable incomes, swelling global population, and increased awareness among consumers about the emergence of new technologies are among the primary growth stimulants for the market.

The revision on the customs tariff came into effect in line with a harmonised, internationally standardised system of names and numbers to classify traded products and was revised in 2017, according to Fentaye Weldesenbet, tariff allocation senior officer at the Custom Commission.

The Commission was established in 2018 after it split from the then Ethiopian Revenues & Customs Authority. Under the new structure, the Commission is in charge of customs and duty matters and reports to the Ministry of Revenues.

"The implementation of the revision was delayed for two years due to filtering the importers who require a privilege and amending different types of taxes takes time," she said.

The tariff was revised since Ethiopia is a signatory to the International Convention on the Harmonized Commodity Description and Coding System. It is expected to be reviewed every five years.

Ethiopia became a member of the World Customs Organization (WCO), which was established in 1952 as the Customs Co-operation Council. The WCO is an independent intergovernmental body. The Organization's mission is to enhance the effectiveness and efficiency of customs administrations.

Before the revision two months ago, the customs tariff was 20pc, but now the full duty on a computer is 35pc. The new amendment added a 10pc surtax and a five percent customs tax on the product.

Surtaxes levied in addition to and based on the regular tax rate and excise tax is a legislated tax on specific goods or services. The surtax is levied mainly on luxury items.

Seife Tekeleweld, the owner of Green Teck Computer, strongly argues against the surtax on computers, since the product is not a luxury item but rather a necessity for students.

Following the adjustment of the tariff, the number of customers flowing to Green Teck Computer has significantly decreased, according to Seife, who has been in the business for the past four years.

He claims that he was selling five to ten laptops on average a day before the tariff amendment. But now there are days that he does not sell a single laptop, he said.

"Most of my customers only request the price of the product and leave without buying," he says.

Recently, Seife sold brand new laptops for between 10,500 Br  and 23,000 Br, and most of the time his customers are university students and people who work on research papers.