Customs, in a release, said the duty structure for mobile phones is:<\/em><\/p>\n
- \n
- Import Duty – 20%<\/em><\/li>\n
- General Consumption Tax – 25%<\/em><\/li>\n
- Environmental Levy – 0.5%<\/em><\/li>\n
- Standard Compliance Fee – 0.3%<\/em><\/li>\n<\/ul>\n
According to Jamaica Customs, the above charges are calculated on the Cost, Insurance & Freight value, noting that a Customs Administrative Fee is also applicable to the clearance of goods.<\/em><\/p><\/blockquote>\n
(Source:\u00a0 Jamaica Observer<\/a>)<\/p>\n
High import charges is the norm across the Caribbean<\/h3>\n
Although the situation in Jamaica was the impetus for this article, having (relatively) high Customs charges on smartphones, and other electronic devices, tends to be the norm in that Caribbean. Below (Table 1) is an outline of the major Customs taxes and duties payable on mobile\/cellular phones and smartphones in a cross-section of Caribbean countries. It must be emphasised that the taxes and duties listed may not be complete. Typically, Customs processing and handling fees must also be paid, along with other taxes and charges.<\/p>\n
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Customs duties and charges payable on mobile\/cellular phones imported into select Caribbean countries (Sources: assorted Government websites)<\/p><\/div>\n
What are the rates of the import duties and charges payable on mobile\/cellular phones in your home country? Tell us in the comments section below.<\/strong><\/em><\/p>\n
<\/p>\n
Based on the above, and although all of the charges payable might not be fully captured, the duties and charges payable on an imported mobile\/cellular phone ranges from around 22.5% of the landed cost of the phone in the Bahamas, to a high of 55.5% in Saint Kitts and Nevis. However, when all of the other \u2018minor fees and charges\u2019 are added, there could be a substantial bump in the cost \u2013 closer to 50% or 60% of the landed cost of a phone.<\/p>\n
Access versus government revenue<\/h3>\n
As mentioned earlier, owning a suitable device is a crucial hurdle in securing Internet access. Even if an individual is not buying a top-of-the-line smartphone, he\/she might be paying at least double the list price of the phone, which again, for those in the lower socio-economic brackets might be beyond their budget.<\/p>\n
Moreover, this scenario highlights an uneasy tension: the need of governments to generate revenues through the import charges levied on telecoms devices, versus the high prices of smartphones \u2013 making them out of the reach of those who cannot afford, and more importantly, limiting their ability to access the Internet.<\/p>\n
The exponential growth of telecoms and ICTs, along with the take-up of telecoms\/ICT services has resulted in a common trend across many countries: the imposition of a broad range of special taxes and charges on the telecoms\/ICT sector. For example, in Jamaica, the General Consumption Tax levied on telecoms goods and services is nearly 10 percentage points higher, at 25%, whilst the standard GCT rate is 16.5%. And in Trinidad and Tobago, there is now an online purchase tax of 7%, which is levied on goods purchased via the Internet and imported into the country.<\/p>\n
Are smartphones still a luxury item?<\/h3>\n
Ultimately, and based on the posture Caribbean countries have adopted, it appears that mobile\/cellular phones and smartphones are still considered luxury items, and so are subject to relatively high import duties and charges. As a result (and almost by definition of luxury items), it is not expected that all citizens will be able to afford them. However, such as position is\u00a0 contrary to many of the targets and goals with respect to universal Internet access that have been established by organisations, such as the United Nations<\/a> and the Broadband Commission<\/a>, to which Caribbean countries, either explicitly or tacitly, have agreed.<\/p>\n
Image credit:\u00a0\u00a0U.S. Navy (Wikimedia Commons<\/a>)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"