Audio By Carbonatix
South Africa's government has proposed to remove the luxury excise duty on smartphones worth below $136.37 from April 1 to support digital adoption for low-income households, the National Treasury said on Wednesday.
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 2,500 rand 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 December 31, 2027 to free up radio waves for faster 4G LTE and 5G networks.
Critics of the plan had argued that phasing 2G and 3G networks risked exacerbating the digital divide as many low-income consumers, particularly those in remote areas, may not afford newer smartphones designed for faster networks.
Communications Minister Solly Malatsi told Reuters last year that the ad valorem excise duties contribute to the high cost of smart devices and that he was in talks with treasury to cut these.
Latest Stories
-
GPL 2026/27: Medeama go top after win over Port City
2 minutes -
Manhyia South MP Baffour Awuah reports himself to EOCO after arrest warrant
12 minutes -
Ghana records 11 cocaine cases in 28 drug busts since March 2025; biggest hauls seized abroad
14 minutes -
The numbers behind Carlos Queiroz’s tenure as Black Stars boss
23 minutes -
The man who saw tomorrow: How Dr Bawumia built for Ghana what America and Nigeria are building today
49 minutes -
Kumasi drivers demand price controls for goods, brand some traders as real ‘Kalabule’
52 minutes -
Consumer Protection Agency commends FDA for destroying illegal bales of diapers
56 minutes -
GNFS rescues stranded persons after flooding in Hohoe
1 hour -
Baffour Awuah deliberately refused to honour EOCO invitation – Deputy AG, Srem-Sai
2 hours -
‘Believe in these players’ – Carlos Queiroz tells Ghanaians after leaving Black Stars job
2 hours -
Gideon Boako: GoldBod books must be stretched to establish true nature of reserves support
2 hours -
ECG announces planned maintenance outage in parts of Accra on Friday
2 hours -
Carlos Queiroz sacked as Black Stars head coach
2 hours -
Parliamentary Sports Committee to ‘interrogate’ Black Stars struggles with Ministry, GFA invitations
2 hours -
Asutifi North Police arrest 7 in crackdown on suspected drug activities
2 hours