South Africa Cuts Luxury Tax On Basic Smartphones

Currently, so called ad valorem excise duties on smartphones are charged at a rate of 9.

Government proposes 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, treasury said in its budget statement.

This proposal will enhance smartphone affordability at the lower end of the price spectrum and support efforts to promote digital inclusion for low-income households, it added.

The move comes as South Africa plans a total shutdown of 2G and 3G networks by 31 December 2027 to free up radio waves for faster 4G/LTE and 5G networks.