THE domestic mobile phone market is flooded by smuggled handsets of many international brands, leaving the government deprived of a huge revenue each year which also makes for an uneven competition in the market with the legally marketed handsets. A national English daily showed the open-secret matter of the mobile handset market that said the high-priced cellular phone is dominating the brands market of mobile handsets as the sets come inside through illegal means by evading taxes and levies. Why cannot the government take steps to stop the influx? While almost all modern technology is swiftly settling on Smartphone-based platforms, why the government, which claims of being a digital one, is not encouraging businesses to set up domestic mobile phone brands?
The report said that the city’s shopping malls are selling handsets of brands like Apple, Samsung, HTC, Blackberry, Sony etc without warranty– that means the handsets were smuggled into the country. The people who supply these handsets are called ‘Luggage Party’ and usually go abroad and bring the sets in their personal luggage to evade tax, market insiders said. Most of the high-tech, latest technology-enabled and pricey handsets came through illegal channels, as the globally popular brands don’t have a franchise in Bangladesh.
Having no clearance from the telecom regulator or customs, some sort of handsets also provide false or wrong IMEI (International Mobile Equipment Identity) numbers, unique 15-digit numbers assigned to all cellular devices. IMEI numbers can be used to block a mobile phone from being used by another person or phone company if it has been reported lost or stolen.
Samsung Bangladesh, a South Korea based mobile giant which has a legal business here, said that the illegally imported mobile phone sets evade over Tk 4 crore revenue in every month. The company’s data said for illegal imports and sales of its newly launched Galaxy S5, the government lost revenue of Tk 16.60 lakh for the single item. Meanwhile, the smuggled handsets put the legal importers’ business in risk as a legally brought newly launched iphone costs Tk 74,000 in the country market whereas it costs only Tk 52,000 when brought illegally.
It’s high time to setup Bangladeshi brands of Smartphone as mobile phone now-a-days is not only a symbol of connectivity, but also has the power to stimulate social change and is also a tool for creating social awareness. Knowledgeable sources say, unhindered smuggling of mobile phones would only damage the local formal market and also deprive the National Exchequer of huge revenue income. For a level playing field smuggling mobile phones should be checked strongly.
