Feb 23, Kathmandu - As Nepal gears up for the national parliamentary elections on Falgun 21, a significant rise in smartphone imports has been observed, according to recent data from the Department of Customs. The ongoing election campaign appears to be fueling demand for mobile devices across the country.

In the first seven months of the current fiscal year 2082/83 (mid-July to mid-February), Nepal imported smartphones valued at approximately NPR 26.68 billion in customs duties. By the end of Magh, a total of 1.41 million smartphones had entered the country, generating nearly NPR 4.97 billion in government revenue.

Compared to the same period last year (2081/82), smartphone imports have surged by 40.59%. Last year, imports worth NPR 18.93 billion included 1.22 million units, indicating a significant increase of NPR 7.70 billion in mobile imports this year.

In the month of Magh alone, Nepal imported smartphones worth NPR 3.38 billion, with 162,000 units brought in—showing a 49% month-on-month increase. In the previous year’s Magh, imports were valued at NPR 2.26 billion for 118,000 units, reflecting a 49% rise in value and a 37% increase in quantity.

The data also reveals that the retail market price of imported smartphones is approximately 40% higher than the customs value. For example, the NPR 3.38 billion worth of imports could fetch a retail value of around NPR 4.47 billion after markup.

Due to VAT at 13% and customs duties of 5.65%, the government earns about 18.65% of the total import value as revenue. Meanwhile, consumer prices are further inflated by margins of about 5.5% from importers and additional wholesale and retail markups, adding up to approximately 40% extra cost for buyers.

Currently, Nepal imports around 162,000 smartphones every month, with a total customs value of NPR 3.38 billion and a market value of nearly NPR 5 billion. The average price per mobile in the market is estimated at NPR 29,000, with most consumers opting for smartphones in the NPR 20,000–30,000 range. Higher-end and mid-range models account for a significant share of consumer spending, averaging around NPR 30,000 per device.

The trend of replacing old phones with new ones, losing or damaging devices, upgrading to newer versions, and the increasing demand for advanced smartphones with AI features continues to drive up mobile consumption. The rise in modern, AI-enabled smartphones indicates a growing preference for premium devices among Nepali consumers.

This surge in smartphone imports highlights the strong consumer demand driven by the upcoming elections and evolving technological preferences in Nepal.