Kathmandu: As Nepal gears up for nationwide parliamentary elections on March 5, smartphone imports have climbed sharply, reflecting heightened political activity and consumer demand.
Fresh data from the Customs Department shows a significant rise in mobile phone shipments during the current fiscal year.
In the first seven months of fiscal year 2025/26 (mid-July to mid-February), Nepal imported smartphones worth Rs 26.68 billion (customs value). A total of 1.414 million units entered the country during this period, generating Rs 4.97 billion in customs revenue for the government.
Compared to the same period in the previous fiscal year, smartphone imports have increased by 40.59 percent. Last year, Nepal imported 1.222 million units worth Rs 18.93 billion over the same seven-month stretch. This means imports have risen by Rs 7.7 billion year-on-year.
The month of Magh (mid-January to mid-February) alone saw imports of 162,000 smartphones worth Rs 3.38 billion. This marks a 49 percent increase in value compared to the same month last year, when 118,000 units worth Rs 2.26 billion were imported. In terms of quantity, imports in Magh rose by 37 percent year-on-year.
Once imported devices reach consumers, their prices rise significantly due to taxes and distribution margins. Although smartphones worth Rs 3.38 billion were imported in Magh, their estimated market value climbed to Rs 4.47 billion after accounting for taxes and markups, an increase of roughly 40 percent over the customs value.
Smartphones imported into Nepal are subject to a 13 percent Value Added Tax (VAT) and a 5.65 percent excise duty, meaning 18.65 percent of the final cost goes directly to the government in taxes. In addition, importers and retailers apply margins of around 5.5 percent, with further markups added as products move from wholesalers to retailers, collectively pushing retail prices about 40 percent higher than the declared import value, according to the Mobile Importers Association.
On average, around 162,000 smartphones are entering Nepal each month, with a customs value of Rs 3.38 billion and a market value approaching Rs 5 billion. The data suggests that most of these imported devices are being absorbed by the domestic market.
Based on current figures, the average retail price of a smartphone in Nepal stands at around Rs 29,000. Traders say handsets priced between Rs 20,000 and Rs 30,000 remain the most popular among consumers, although higher-end and mid-range models also contribute to pushing the overall average closer to Rs 30,000 per unit.
Market dynamics also play a role in sustaining demand. Consumers frequently upgrade to newer models, replace lost or damaged phones, or shift to higher-spec versions. The growing popularity of AI-enabled smartphones and advanced features has further fuelled demand for premium devices, contributing to the continued rise in imports.
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