EU Scraps Plans for an Import Duty on Smartphones

The European Union has cancelled plans for a controversial import tax that could have pushed up the price of smartphones by 14%. In a statement, Swedish Trade Minister Ewa Bjorling said that the majority of member countries of the EU had voted against the plan.

Sweden has just taken over the rotating Presidency of the European Union.

"We need more products and businesses free of tariffs, not less, and therefore today's decision and the backing that was achieved is a very positive signal," Bjorling added.

The plans, which emerged last year, had proposed that mobile phones with increased functionality, such as GPS receivers and mobile TV would face an import tax of up to 14%.

When the plans were announced last year, EICTA - the body representing the industry in the EU said that since the Barroso Commission took office four years ago, said 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.

Posted to the site on 2nd July 2009