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Sunday, 5 July 2020

Your next phone is really going to cost a lot more

Your next mobile phone is definitely going to cost more as it is hit with two surtaxes: Imported mobile phones look set to be hit with two new taxes after local reports suggested over the weekend that the National Telecom Regulatory Authority’s 5% import fee will be imposed in addition to a 5% industry development fee. The NTRA last week announced that it would impose a 5% fee on imported mobile phones, which we assumed referred to the development fee passed by lawmakers in May. But industry figures have suggested that the NTRA levy has been introduced in addition to the 5% development fee imposed by the Finance Ministry.

The news has some retailers suggesting the fees will see sales contract as companies will have no choice but to pass the new levies directly on to consumers. The NTRA fee will be 5% of the customs value of any handset. The 5% development fee will be charged on the final price of a handset after VAT and any other taxes or fees. Only locally assembled handsets (of which there is only the Sico entry at present) are exempt from the fees.

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