Europe Considering an Import Tax on Smartphones

The European Commission is expected to present a proposal this week to charge customs duties on mobile phones, by moving ‘sophisticatedÃ' phones into a dutiable customs category. Mobile phones with increased functionality, such as GPS receivers and mobile TV would face an import tax of up to 14% under the proposals.

Mark MacGann, Director General of EICTA, the body representing the industry in the EU, said: "We are witnessing a lack of joined-up government in the EU. At a time when Europe is confronted with protracted recession, there is a need to reassure consumers. Measures such as this send the wrong message and end up penalising the most critical forces of economic recovery in Europe: consumers and innovators".

Since the Barroso Commission took office four years ago, EICTA says that the EU has slapped customs duties on a range of popular products for business and personal use, ignoring an international trade agreement to keep high-tech products duty-free.

Over the past four years, acting on proposals from the Commission, the Member States of the EU have ruled to classify a range of products such as LCD monitors, set-top boxes with a hard drive and multifunctional devices (printer/scanner/copier) into customs categories where those products are taxed upon entry to the EU, at a rate of up to 14%. These decisions appear in total contradiction to the EUÃ's commitments under the Information Technology Agreement (ITA), signed by WTO members in 1996, which requires duty-free treatment for most information technology products.

Posted to the site on 14th December 2008