Authorities will take away the luxurious excise obligation on smartphones value lower than R2 500 from 1 April to help digital adoption for low-income households, nationwide treasury mentioned on Wednesday.
Presently, so known as advert valorem excise duties on smartphones are charged at a fee of 9%.
“Authorities proposes that as of 1 April 2025 this obligation fee be utilized solely to smartphones with a worth paid higher than R2 500 on the time of export to South Africa,” treasury mentioned in its finances assertion.
This proposal will “improve smartphone affordability on the decrease finish of the worth spectrum and help efforts to advertise digital inclusion for low-income households”, it added.
The transfer comes as South Africa plans a complete shutdown of 2G and 3G networks by 31 December 2027 to liberate radio waves for sooner 4G/LTE and 5G networks.
Critics of the plan had argued that phasing 2G and 3G networks risked exacerbating the digital divide as many low-income shoppers, significantly these in distant areas, might not afford newer smartphones designed for sooner networks.
Learn: Ramaphosa’s digital desires to butt heads with fiscal actuality?
Communications minister Solly Malatsi mentioned final yr that the advert valorem excise duties contribute to the excessive price of good units and that he was in talks with treasury to chop these. — (c) 2025 Reuters
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