The South African government is set to remove luxury excise duties on smartphones under R2,500 beginning April 1, 2025. This move aims to enhance affordability for low-income households and promote digital inclusion amidst the planned shutdown of 2G and 3G networks by 2027.

The South African government has announced the removal of luxury excise duties on smartphones priced below R2,500 effective from April 1, 2025. This initiative, outlined by the national treasury, aims to promote digital adoption among low-income households by reducing the current 9% ad valorem excise duty levied on smartphones. By implementing this change, the government seeks to enhance affordability and digital inclusion for economically disadvantaged populations.

In conclusion, the decision to eliminate the luxury tax on basic smartphones is a strategic move by the South African government. It reflects an initiative to increase digital access for low-income households while also navigating the impending transition to newer mobile networks. This action addresses concerns about potential digital inequality as the country phases out older network technologies.

Original Source: techcentral.co.za