The Association of Comms and Technology (ACT) – an industry body – has welcomed the National Treasury’s proposal to exempt smartphones priced at R2,500 or less from the 9% ad valorem excise duty, effective 1 April 2025. This move aims to support digital adoption among low-income households.
Currently, smartphones in South Africa are subject to a 9% excise duty. However, the Treasury announced on Wednesday that this duty will now apply only to devices priced above R2,500.
ACT CEO Nomvuyiso Batyi hailed the decision as a significant step toward digital inclusion. “This tax exemption is a game-changer for millions of South Africans, particularly those in low-income households, who will now have better access to affordable, internet-enabled devices,” she said.
The timing of this policy shift aligns with South Africa’s plans to phase out 2G and 3G networks by 31 December 2027, making way for faster 4G/LTE and 5G networks.
Batyi emphasised the importance of affordable 4G- and 5G-enabled smartphones in this transition. “For the digital economy to thrive, access to affordable devices is critical. This tax cut ensures no one is left behind,” she added.
ACT has long advocated for policy reforms to reduce barriers to connectivity. “We have actively engaged with government, OEMs, and stakeholders to push for the removal of excessive taxes on smart devices,” Batyi noted. “This decision is a direct result of those efforts and aligns with our mission to make digital services accessible to all.”
Batyi also highlighted the broader implications of the move. “This policy reinforces the need for an environment where devices are not only available but also affordable. We look forward to continued collaboration with government, industry partners, and OEMs to build a truly inclusive digital future for South Africa,” she concluded.
