In a recent development, the Nepalese government has introduced a new tax policy for imported iPhones and mobile phones. According to the policy, a tax of Rs. 10,000 will be imposed on iPhones and phones costing above Rs. 1,00,000 that are brought from abroad to Nepal. Additionally, other smartphones will be subject to a tax of Rs. 3,000, while non-smartphone mobile phones will incur a tax of 200 rupees.
The implementation of this tax policy aims to regulate the import and usage of high-value mobile devices in Nepal. By imposing taxes on these devices, the government seeks to generate revenue and ensure fair market practices. Let’s delve deeper into the specifics of this tax policy and its implications.
Tax Rates on iPhones and High-Cost Phones
Under the Aarthik Vidhayak 2080 (आर्थिक विधेयक २०८०), a tax of Rs. 10,000 will be charged for each iPhone and phone that costs more than Rs. 1,00,000. This tax applies to devices brought from abroad into Nepal. It is important for individuals to take into account this additional cost when planning to purchase high-end phones from overseas.
Tax Rates on Other Smartphones and Non-Smartphone Mobile Phones
Apart from iPhones and high-cost phones, the government has also imposed taxes on other categories of mobile phones. Smartphones, excluding iPhones, will be subject to a tax of Rs. 3,000. On the other hand, non-smartphone mobile phones, such as basic feature phones, will incur a tax of 200 rupees. These taxes are applicable to both imported devices and those purchased within Nepal.
Registration Requirement for Existing Mobile Phones
Users who possess mobile phones that were in use until May 29th, 2023, but are not registered in the Mobile Device Management System (MDMS) implemented by the Nepal Telecommunications Authority (NTA), are required to pay a lump-sum fee for the tax. During the payment process, it is crucial to mention the International Mobile Equipment Identity (IMEI) number of the phone. This registration requirement ensures that all mobile phones in use are accounted for and contribute to the tax revenue.
Exemptions for Nepali Migrant Workers
In a move to support Nepali migrant workers, the government has exempted them from paying the mobile phone tax under certain conditions. If a citizen returns from foreign employment with a labor permit that exceeds six months and provides proof of it, they will be eligible to have one mobile phone registered by the Telecommunication Authority free of charge for their personal use. This exemption recognizes the contribution and challenges faced by Nepali migrant workers and provides them with a hassle-free process to own a registered mobile phone.
One Percent Service Charge on Migrant Workers
In addition to the mobile phone tax, the government has implemented a one percent service charge on migrant workers. According to the Aarthik Vidhayak, individuals licensed to operate foreign employment businesses are required to submit a foreign employment service fee equivalent to one percent of the amount collected from individuals pursuing foreign employment. This service charge aims to support and enhance services for individuals engaged in foreign employment.
Procedures for Service Charge Collection and Reporting
The Aarthik Vidhayak specifies that the collected service fee will be utilized for the benefit of individuals pursuing foreign employment. Foreign employment professionals are responsible for depositing the service fee into the revenue account by the 25th of each month. Additionally, they must submit corresponding details to the relevant revenue office. It is important to comply with these reporting and payment procedures to avoid any penalties. Failure to file the service fee will result in the imposition of a 15 percent interest rate.
In conclusion, the new tax policy on iPhones and mobile phones in Nepal introduces taxes on high-value devices, aiming to regulate their import and usage. It is crucial for individuals to be aware of the specific tax rates based on the device category and cost. Additionally, existing mobile phones must be registered to comply with the regulations. The exemption for Nepali migrant workers and the service charge on them reflect the government’s efforts to support and enhance services for this group. By understanding and adhering to these tax policies, individuals can ensure a smooth and compliant experience when it comes to mobile phone ownership in Nepal.