By Easwaran Rutnam in Singapore
The world’s leading mobile phone manufacturer, Nokia, has welcomed government moves to crackdown on the grey market of mobile phones and sees it as a first step towards reducing the high cost of mobile devices sold in Sri Lanka.
Speaking on the sidelines of a Nokia showcase in Singapore, the Managing Director of Nokia Emerging Asia (EA) limited Prem Chand said that he hopes to have fresh consultations with the telecom regulator in Sri Lanka within the next few months to discuss a reduction in the duty tax charged on mobile devices imported to Sri Lanka.
Worried over the growing grey market for mobile phones where devices are illegally imported from countries like China and India, Sri Lankan Customs recently announced it will confiscate such cell phones being brought in as accompanied or unaccompanied baggage or as gift.
Customs has announced that all goods for commercial purposes/commercial quantities have to be imported in accordance with the provision of the Import Control Act and regulations framed there under.
It added that the importer of such goods would also be liable to penalties/forfeited under Section 129 of the Customs Ordinance. This was enforced with effect from May 15.
“We are very pleased with this move. This could be seen as the first step towards removing import duties on the mobile devices. The next budget of Sri Lanka is due in November and before that I hope to have discussions with the regulator on reducing duties charged on original mobile devices imported to the country,” Mr. Chand said.
Also speaking here Alex Lambeek, Vice President of the Nokia Entry Category Management division said that as long as import duties remained the grey market will continue and as such the government needs to remove such duties.
It is estimated that over 20,000 mobile phones are entering the country through illegal channels every month.
“The grey market is not good for the government as it deprives them of revenue. The government must look at the importance of the telecom sector and remove these duties so as to encourage its further expansion,” Mr. Chand commented.
The Nokia official meanwhile revealed that Sri Lanka was among its top five markets in the World and is considered a more developed market among the countries categorized as its emerging markets in South Asia which also includes Bangladesh and Nepal.
