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South Africa cuts luxury taxes in major smartphones

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South Africa cuts luxury taxes in major smartphones


Finance Minister Enoch Godongwana

The government will On Wednesday, remove the luxury excise duty in smartphones with less than April 1, 500 R2 500 for digital adoption for digital adoption for low-income households.

Currently, the announcement on smartphones is charged with a 9% rate of IDs called Valorem.

“The government suggests that this duty rate will be applied only to smartphones with more than R2 500, in exports to South Africa,” said the treasury budget statement.

This proposal “will increase smartphone convenience in the lower part of the price spectrum for digital access to low-income households,” he said.

The movement plans to close the total of 2G and 3G networks until December 31, 2027 by 31 December 2027 for South Africa, 4G / LTE and 5G networks.

The critics of the plan claimed that many low-income consumers of digital division, especially in distant areas, which could not get new smartphones designed for faster networks.

Read: Digital dreams of Ramaphosa, Ramaphosa’s financial reality?

Communications Minister Selyly Malatsi, the announcement last year has contributed to the high prices of excise duties of Valorem’s excise duties, and this is in the treasury negotiations, he said. – (c) 2025 Reuters

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