Operators Applaud Tax Cut For Budget Smartphones

The decision, which was championed by communications minister Solly Malatsi, is aimed at bridging the digital divide and making it easier for lower-income consumers to move to 4G and even 5G devices ahead of the planned shutdown of 2G and 3G networks in South Africa.

Currently, ad valorem excite duties on all smartphones are imposed at a rate of 9 of the cost of the device.

"Government proposed that as of 1 April 2025, this duty rate be applied only to smartphones with a price paid greater than R2 500 at the time of export to South Africa," national treasury said in its budget statement on Wednesday.

This move will "enhance smartphone affordability at the lower end of the price spectrum and support efforts to promote digital inclusion for low-income households", treasury said.

"This proposed tax adjustment is a direct result of those efforts and aligns with our broader mission of making digital services accessible to all."