Proposal to Remove Luxury Duty on Affordable Smartphones in South Africa

South Africa will eliminate luxury excise duties on smartphones priced below 2,500 rand, starting April 1, 2025, to enhance digital access for low-income households. This initiative supports digital inclusion as the country phases out older network technologies.

The South African government has announced a proposal to eradicate the luxury excise duty on smartphones valued below 2,500 rand (approximately $136.37) starting April 1, 2025. This initiative, according to the National Treasury, aims to foster digital adoption among low-income households. Currently, smartphones are subject to a 9% ad valorem excise duty.

The proposed removal of luxury duties on lower-value smartphones seeks to make technology more accessible for low-income South Africans, thereby promoting digital inclusion. As the country plans to phase out 2G and 3G networks by 2027, the government recognizes the need to address affordability issues for consumers reliant on older network technologies.

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