South Africa will Eliminate Excise Taxes on Smartphones Starting April 1 to Promote Wider Digital Access

South Africa is about to make a big change that will help more people get their hands on smartphones. Starting April 1, the government will stop charging excise taxes on smartphones that cost less than 2,500 rand (around $136.37). This move is part of a larger plan to make sure everyone has access to digital technology, especially those who can’t afford it.

Right now, South Africa charges a 9% ad valorem excise tax on smartphones. This tax is like a luxury fee that makes these devices more expensive. On top of this tax, smartphones also have Value Added Tax (VAT) and import duties added to their price. By removing the excise tax on cheaper smartphones, the government hopes to make them more affordable for people who struggle to buy them.

The National Treasury says this change will make smartphones cheaper for people who can’t afford them right now. It’s also part of a bigger effort to close the gap between those who have access to technology and those who don’t. In South Africa, more and more people are using smartphones. In fact, forecasts show that the number of people using smartphones will keep growing over the next few years. By 2029, almost 40% of the population is expected to be using smartphones.

South Africa already has a high number of mobile connections—124 million at the start of 2025, which is almost double the country’s population of 64.4 million. This shows that many people have more than one phone or SIM card. However, despite this widespread use, many people still can’t afford smartphones, especially in poorer communities.

The decision to remove South Africa excise taxes on smartphones comes as the country plans to phase out older network technologies like 2G and 3G by the end of 2027. This will free up space for faster networks like 4G LTE and 5G. But some experts worry that shutting down older networks could make it harder for low-income users to stay connected, since they often rely on basic phones that don’t work with newer networks. Making smartphones more affordable could help solve this problem by giving more people access to devices that can use faster networks.

Communications Minister Solly Malatsi has been talking about how important it is to make smartphones cheaper. He believes that the excise tax is a big part of what makes them so expensive and has been working with the treasury to get rid of it. The government’s decision shows that they’re serious about making sure everyone has access to digital technology.

Big telecom companies like MTN and Vodacom also think that lowering taxes on smartphones is crucial for helping people transition to newer networks. They believe that the government, regulators, and companies need to work together to make this happen smoothly.

South Africa’s move to remove excise taxes on smartphones is similar to what other African countries are doing to make technology more accessible. For example, Chad removed duties on telecom equipment in 2022 to help more people get connected. These efforts show how important it is for governments to make sure everyone has access to digital tools.

By stopping the collection of South Africa excise taxes on smartphones priced below 2,500 rand, the government is taking a big step toward helping its citizens get better access to technology. This change isn’t just about making smartphones cheaper; it’s also about making sure South Africa leads the way in promoting digital inclusion across Africa.

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