Communications minister Solly Malatsi says luxury goods classification on smartphones inhibits digital adoption.
Solly Malatsi plans to meet with national treasury to discuss the removal of smartphones, and particularly 4G devices, from the “luxury goods” classification which affects taxation on imports.
The resulting additional taxes make them more expensive for consumers. But Malatsi has argued that smartphones are instead a necessity without which citizens cannot participate in an increasingly digital economy. “In order for you to enjoy connectivity, you must have access and you have to have a smartphone in this day and age,” Malatsi told eMedia-owned television broadcaster eNCA in an interview on Thursday ahead of the opening of parliament.
South Africa is not the only country in Africa that imposes high taxes on handsets. Many governments in sub-Saharan Africa rely on the income these taxes provide to deliver public services.
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