Exemption of smartphones from duty hailed

The Association of Comms & Technology (ACT) has welcomed government's decision to exempt smartphones priced at R2 500 or less from the 9% ad valorem excise duty starting 1 April.

- Faizel Patel

The Association of Comms & Technology (ACT) has welcomed government's decision to exempt smartphones priced at R2 500 or less from the 9% ad valorem excise duty starting 1 April. Finance Minister Enoch Godongwana made the announcement in the 2025 budget tabled in parliament last Wednesday.

Smartphones have historically been taxed like luxury products, with a 9% ad valorem tax applied to the export price of the devices. An ad valorem tax of 9% has historically been applied to all smartphone sales in South Africa, as well as motor vehicles, electronic devices and perfume.