KATHMANDU, JUNE 12

Cellphone importers and distributors in Nepal have commended the government for successful implementation of the Mobile Device Management System (MDMS), a groundbreaking solution aimed at combating illegal import, sale, and distribution of mobile phones within the country.

In a joint statement, the Nepal Mobile Distributors Association (NMDA) and the Mobile Phone Importers Association (MPIA) have lauded MDMS, which has streamlined the registration process for mobile phones brought into Nepal for personal use from abroad. This streamlined process ensures compliance with legal procedures and facilitates revenue generation.

The statement has highlighted advanced features of the MDMS software, including improved mobile set facilitation and enhanced security measures. These features provide accurate information to the public, promoting transparency and clarity.

Following the implementation, the government is expected to collect an additional three to four billion rupees annually, significantly reducing financial losses due to tax evasion.

Additionally, consumers will no longer fall victim to scams involving stolen or counterfeit phones, as the MDMS will identify and reject such devices. Moreover, the availability of IMEI user details will greatly assist law enforcement agencies in their investigations, enabling more effective crackdowns on illegal activities.

The NMDA and MPIA have also expressed optimism about the potential for the mobile phone industry to flourish in Nepal.

'If the government can arrange for 100 per cent excise duty and VAT refund on mobile phones, mobile phones would be more affordable in Nepal.'

The Nepal Telecommunication Authority (NTA) implemented the MDMS on May 1, following the government's decision to regulate the import and sale of phones without paying customs duty.

In Nepal, the annual import of mobile phones involves a tax payment of approximately Rs 50 billion, while an estimated Rs 15 billion worth of customs duty is evaded. Through mobile phone transactions alone, the government has collected over eight billion rupees in revenue across different categories. The mobile phone business in Nepal, directly and indirectly, employs over 50,000 people, while millions of individuals use their mobile phones to promote their businesses and conduct various online activities.

A version of this article appears in the print on June 13, 2023, of The Himalayan Times.