The South African government has proposed removing the excise tax on smartphones priced under 2,500 rand ($136.37) from April 1st.
On March 12, South Africa's Ministry of Finance announced that the government has proposed eliminating the excise tax on smartphones priced under 2,500 rand (US$136.37) from April 1, in order to encourage the use of digital technology among low-income households.
Currently, the excise tax on smartphones in the South African market is applied at a rate of 9%.
Specifically, the South African government proposed that, starting April 1st, this tax would only apply to smartphones with a purchase price exceeding 2,500 rand when exported to South Africa.
 |
| Currently, a 9% excise tax on smartphones in South Africa is applied. (Illustrative image) |
This proposal aims to reduce the price of smartphones in the low-end segment and support efforts to promote digital inclusion for low-income households, the South African Ministry of Finance added.
This move comes as South Africa plans to completely shut down its 2G and 3G networks by December 31, 2027, to free up radio space for faster 4G LTE and 5G networks.
Critics argue that the gradual shutdown of 2G and 3G networks could further widen the digital divide, as many low-income consumers, especially those in remote areas, may not be able to afford new smartphones designed for faster networks.
Minister for Communications Solly Malatsi stated last year that excise taxes contribute to the increased cost of smart devices and that he is in discussions with the Ministry of Finance about reducing these taxes.
| The proposal to eliminate this excise tax aims to lower the price of smartphones in the lower price segment and support efforts to promote digital inclusion for low-income households, the South African Ministry of Finance said. |
Source: https://congthuong.vn/nam-phi-giam-thue-cho-dien-thoai-thong-minh-gia-tri-thap-378113.html
Comment (0)