Kathmandu, June 14. The Government of Nepal has implemented the Mobile Device Management System (MDMS) to effectively combat the illegal import, sale, and distribution of mobile sets in the country. This initiative aims to safeguard the legitimate use of mobile devices and enhance the tracking and blocking of stolen and lost mobile sets. The MDMS enables Nepal Telecommunications to establish a more systematic approach to address these issues and ensure better control and monitoring.
After the implementation of the Mobile Device Management System (MDMS), the registration process for mobile phones brought into Nepal for personal use from abroad has become more streamlined, ensuring compliance with legal procedures and revenue facilitation. The MDMS software encompasses key features such as facilitating mobile sets and enhancing security measures. Its primary objective is to provide accurate information to the public, eliminating any incorrect information or confusion through interactions and press conferences, thus serving the purpose of transparency and clarity.
Mobile phones have become an essential commodity in human life, alongside basic necessities like food, shelter, and clothing. 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 of Nepal has collected over Rs. 8 billion in revenue across different categories. The mobile phone business in Nepal, directly and indirectly, employs over 50,000 Nepalese, while millions of individuals promote their businesses by using mobile phones for promoting their businesses and conducting various online activities. Unauthorized sales and distribution of mobile phones worth Rs. 15 billion without paying customs duty are still being carried out, causing significant damages. As journalists, we aim to shed light on the consequences and impacts of such actions.
- Annually, the Government of Nepal has been losing revenue of Rs. 3 billion.
- Some of the phones that are brought into Nepal in this way are stolen or counterfeit. However, users may not be aware of this, as they may have paid the same price as a legitimate phone. As a result, consumers may be cheated out of money or not be able to get the necessary spare parts for their phones.
- Nepal Police has problems in such crime investigations.
- Traders in Nepal are migrating due to declining businesses, low-profit margins, and the burden of taxes and financial obligations. This unstable situation has forced them to keep their houses and farms in the bank as they struggle to maintain their livelihoods.
The Nepal Telecommunication Authority (NTA) implemented the Mobile Device Management System (MDMS) on May 1, to the Government of Nepal’s decision, to regulate the import and sale of phones without paying customs duty.Following the implementation of this system, unregistered phones will be unable to operate with Nepali SIM cards, effectively preventing the use of unauthorized phones. To facilitate compliance, the government has introduced a provision allowing individuals coming to Nepal from abroad to register two phones in the MDMS free of charge.
Benefits of Implementing Mobile Device Management System (MDMS):
- The government can collect revenue equal to 3-4 billion rupees annually.
- Customers do not need to be cheated as stolen, counterfeit, and low-quality phones will not be accepted.
- When MDMS is implemented, the details of every IMEI user will be with the Nepal Telecommunication Authority, which will help the Nepal Police in the investigation.
- By taking on risks and expanding their businesses, entrepreneurs contribute through tax payments to the government and by maintaining their assets, such as houses and farms in banks. In doing so, they not only safeguard their own interests but also protect the livelihoods of millions of Nepalis who depend on this business sector.
- If the government can arrange 100% excise duty and VAT refund, mobile phones in Nepal, the industry can be opened and mobile phones can be provided in Nepal at a lower price than abroad.
With the implementation of MDMS, there is confidence that the price of mobile phones will not increase. The intention is for the mobile phone manufacturing company to bear the cost of the phone and the trader’s margin, ensuring that consumers are not burdened with higher prices.
