Smartphone Imports in Nepal Rise by 40% Amid Election Activities

Kathmandu – Along with increasing political activities ahead of the upcoming House of Representatives election on Falgun 21, smartphone imports in Nepal have also risen significantly. According to the latest data published by the Department of Customs, smartphones worth Rs. 26.68 billion were imported during the first seven months (Shrawan to Magh) of the current fiscal year 2082/83. A total of 1.414 million smartphones were imported during this period, generating customs revenue of Rs. 4.97 billion for the government. Compared to the same period last fiscal year, smartphone imports have increased by 40.59 percent. In Magh alone, 162,000 mobile phones worth Rs. 3.38 billion were imported, reflecting a 49 percent growth.

Imported smartphones are subject to 13 percent VAT and 5.65 percent excise duty, making the total tax burden 18.65 percent. Additionally, profit margins of importers, wholesalers, and retailers raise the final market price by around 40 percent before reaching consumers. As a result, smartphones imported in Magh at Rs. 3.38 billion were sold in the market at an estimated value of Rs. 4.47 billion.

On average, Nepal imports about 162,000 smartphones every month, most of which are consumed domestically. The average price of a smartphone in the market is around Rs. 29,000, while devices priced between Rs. 20,000 and Rs. 30,000 are the most popular among consumers. In recent years, the growing use of AI-supported and advanced smartphones has also increased demand for high-end devices. Frequent upgrades, device damage, loss, and rising technological needs have further contributed to the continuous growth in smartphone consumption.