How much ad valorem exemption on cheaper smartphones will impact price

[Jan]

R211 smartphone tax cut in South Africa

The South African government's ad valorem duty exemption on low-end imported smartphones will reduce the cost of these devices by as much as R211, calculations by MyBroadband show.

The national 2025/2026 Budget Review includes a provision that smartphones valued below R2,500 be exempted from the 9% ad valorem normally applied to this goods category from 1 April 2025.

 

[Bad Ballie]

While the poor might be happy with this the reality is that more expensive cell phones are obviously another government extortion racket. Might be time for us as consumers to buy those cheap PEP phones instead of feeding a corrupt government to sate our greed to be special.

 

[Doom5003]

Lowering the TAX on importing cheap as chips phones doesnt necessarily mean that phones will be cheaper in-stores./online.
Shops know what their clients are willing to pay, and if they can sell the same phone for the same price, that's exactly what they will do.
Lower import costs could just equal higher profits.

 

[Jet-Fighter7700]

Lowering the TAX on importing cheap as chips phones doesnt necessarily mean that phones will be cheaper in-stores./online.
Shops know what their clients are willing to pay, and if they can sell the same phone for the same price, that's exactly what they will do.
Lower import costs could just equal higher profits.

this, our retailers are greedy and leave prices high as people already got used to buying things at the higher price.
but to drum up sales, they might make a big deal and sell it for a tiny bit less

 

[Doom5003]

this, our retailers are greedy and leave prices high as people already got used to buying things at the higher price.
but to drum up sales, they might make a big deal and sell it for a tiny bit less

And even then, they'll just say, it is on sale or special (looking at you black Friday)

 

[Smiggles]

R200?

 

[neoprema]

R211 smartphone tax cut in South Africa

The South African government's ad valorem duty exemption on low-end imported smartphones will reduce the cost of these devices by as much as R211, calculations by MyBroadband show.

The national 2025/2026 Budget Review includes a provision that smartphones valued below R2,500 be exempted from the 9% ad valorem normally applied to this goods category from 1 April 2025.

I just bought a family member a high-ish end Redmi in an African country further up north and paid R2900 less than in ZA. And that wasn't even shopping around and included their VAT which is higher than ours.

We are not getting anything "cheaper" ...

 

[Johnatan56]

Lowering the TAX on importing cheap as chips phones doesnt necessarily mean that phones will be cheaper in-stores./online.
Shops know what their clients are willing to pay, and if they can sell the same phone for the same price, that's exactly what they will do.
Lower import costs could just equal higher profits.

Yes, but in this case, this is on the cheapest phones, so a consumer base that would definitely notice a 9% difference.
But yeah, would expect most companies to just add it to their margins to begin with.

 

[Gudnews]

I just bought a family member a high-ish end Redmi in an African country further up north and paid R2900 less than in ZA. And that wasn't even shopping around and included their VAT which is higher than ours.

We are not getting anything "cheaper" ...

Total you paid?