Smartphone imports surge in Nepal as demand for higher-priced devices grows

Kathmandu: Nepal is importing more mobile phones every month, driven by a steady rise in smartphone consumption. As demand increases, monthly imports have also climbed noticeably.

According to data from the Department of Customs, mobile phones worth Rs 19.13 billion in customs value were imported into Nepal during the first five months of the current fiscal year 2025/26. Between mid-July and mid-December alone, the country imported around 1.07 million units of mobile phones.

Imported mobile phones are subject to 13 percent value-added tax (VAT) and 5 percent excise duty. Taken together, mobile importers pay a lump-sum government revenue of about 18.65 percent at the point of import.

Beyond taxes, additional costs are added through business margins. Importers and sellers typically keep a combined margin of around 5.5 percent, with further markups added as products move from wholesalers to retailers. According to the Mobile Importers Association, by the time a phone reaches consumers, its price can increase by as much as 40 percent over the original import value.

As a result, mobile phones imported at a customs value of Rs 19.13 billion ultimately translate into a domestic market worth approximately Rs 26.79 billion, with an additional Rs 7.65 billion added through taxes and margins before reaching consumers.

Recent data also show that the growing use of higher-priced smartphones is directly pushing up import volumes. Compared to the same period last year, smartphone imports rose by 26 percent. By mid-December last year, Nepal had imported around 990,000 mobile phones, while imports during the same period this year increased to 1.07 million units.

In value terms, mobile phone imports increased by Rs 3.95 billion compared to last year. During the first five months of the previous fiscal year, mobile phones worth Rs 15.18 billion were imported, whereas this figure rose to Rs 19.13 billion in the current fiscal year.

Mobile traders say demand is particularly strong for smartphones priced between Rs 20,000 and Rs 35,000, with the highest consumption seen in the Rs 25,000 to Rs 30,000 range. Monthly sales data from retailers indicate that mid-range smartphones have become the average choice for Nepali consumers, reflecting changing preferences and rising spending capacity in the digital market.