Government imposes green tax on smartphones, price to shoot up!

Last Updated on June 3, 2026

Summary✨

Nepal imposes a ‘green tax’ on smartphones and smartwatches starting Shrawan 01, 2083, with a 5% levy on smartphones and 15% on imported smartwatches.
The government replaces excise duties with a green tax on various electronic items, including routers and microphones.
Rising component shortages in 2026 have already increased smartphone prices, making devices more expensive for consumers.
With the new green tax smartphone policy, buyers should expect even higher prices for smartphones and smartwatches.
The tax may also impact costs for network equipment, influencing telecom and internet service prices.

The government of Nepal is imposing a ‘green tax’ on smartphones and smartwatches in FY 2083/84. The decision was unveiled by the finance minister, Dr. Swarnim Wagle, in his budget speech for FY 2083/84 on Jestha 15. The move is likely to increase the price of the devices further, which have already seen spikes in 2026 due to component shortages.

The financial bill states a levy of 5% green tax on smartphones and telephones used in cellular and wireless networks.

In addition, the government will also impose a 15% green tax on imported smartwatches. The new taxation starts on Shrawan 01, 2083.

It’s not just smartphones and smartwatches, though. Taxes are also imposed on routers, networking switches, and base stations (telecom towers) used by cellular service providers. Likewise, a 10% green tax has been announced on microphones, earphones, and headphones, too.

So far, the government has been charging excise duties on these electronic items. From FY 2083/84, the government will start charging green tax on them. It means excise duties have been replaced with a green tax.

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Smartphones become more expensive in FY 2083/84

The phone price has increased in 2026 due to the shortages of components used inside them. The price hike issue has touched virtually all electronics that use electronic components, from processors to RAM, ROM, etc. It has resulted in a handsome spike in the price of smartphones. Even a budget⚡phone under Rs 30000 has gone up over Rs 35,000 in the current scenario.

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But with the new tax scheme on smartphones and smartwatches, you need to brace for more expensive price tags on these items. If you are in search of a smartphone, your pocket is likely to get a bit lighter this coming year.

What do you think of this new green tax for smartphones, smartwatches, routers, base stations? It will not only increase the end user device cost but also on the network equipment device, which will also have impact on the telecom/internet service cost.