5% Green Tax on Smartphones in Nepal? What’s The Actual Story?

Saying the national budget for FY 2083/84 was one of the most anticipated budgets in recent years would not be an exaggeration. The government is new, the Finance Minister is a decorated economist — so naturally, there was a lot of curiosity and expectation.

The budget brought some major reforms and created quite a buzz. But amongst all the headlines that flooded in after the speech, one stood out to us the most: “Green Tax being imposed on Smartphones.”

Is Green Tax Being Imposed on Smartphones?

The news circulated widely, but no sources were cited — so its legitimacy seemed questionable. So, we did some digging.

We went straight to the supposed source: the Budget Speech for FY 83/84. After going through the entire 93-page PDF published by the Ministry of Finance, we could not find any mention of an additional tax on smartphones.

We then reached out to industry insiders and representatives of some of the most popular smartphone brands in Nepal. Given that they are the ones importing phones, they would be affected first. Surely they’d know, right?

Well, none of them had a clear answer either. All of them had heard the news and were trying to figure out the same thing. A few were kind enough to say they’d get back to us once they had more information.

But that’s a dead end.

We then turned to the source itself — the Ministry of Finance, which referred us to the Inland Revenue Department, who handle tax collection. Neither institution had any concrete information on this new “green tax on smartphones.”

However, an IRD representative did share:

The government may have decided to impose green tax on smartphones, but I do not have that information yet.

The budget has just been announced and all the nuances of the new tax system are yet to be circulated. We will know for sure in the coming month, before the new fiscal year begins.

Meanwhile, our team stumbled upon the Economic Bill of 2083, published by the Ministry of Finance on 15 Jestha 2083 (29 May 2026). On page 375 of the Bill (page 377 of the PDF), the ministry has provisioned for collecting 5% tax on smartphones under — you guessed it, “Green Tax.”

So yes, the government is charging a 5% Green Tax on smartphones. Case closed, right? Not quite.

Are Smartphones Getting More Expensive Because of It?
The government is collecting Green Tax on smartphones, but that does not necessarily mean prices will go up. One brand representative, who also happens to be a Chartered Accountant by profession, shared:

It seems the government is rebranding the Excise Duty being charged on smartphones into ‘Green Tax.’ There will likely be no changes in smartphone prices.

If they charged an additional 5% on top of the 13% VAT and 5% Excise Duty already being collected, that would be a huge blunder.

That is speculation on his part, but there is a basis to it. During his Budget Speech, Dr Swarnim Wagle stated:

It appears smartphones are among the 360 goods that will no longer be subject to excise duty. As per Dr Wagle’s statement, various taxes collected at customs points have been unified under the Green Tax. And here is what the Economic Bill has to say about this Green Tax:

So, the government will collect taxes at the same point as before, at the same rate as before. Meaning, in effect, the name of the tax changes, but not much else.

It also does not seem likely that a government concerned with boosting the economy, one that is proposing hire-purchase schemes on smaller electronics to increase electricity consumption, would tax high-volume essentials like smartphones three times over and drive prices up further.

Green Tax on Smartphones: Conclusion

Official confirmation is yet to come, but all signs point to this being a rebrand rather than an additional burden. The rate appears the same, the collection point appears the same, and the intent behind the budget does not suggest extra taxation on smartphones. If that holds true, prices should remain unaffected.

And honestly, let’s hope it does. Because smartphones are already getting more expensive, thanks to ongoing component shortages. The last thing anyone needs right now is another reason for prices to climb.

Do you think the government will charge the Green Tax on top of VAT and Excise Duty, or is it just a rebrand for the same tax? Let us know in the comments below!