The new tax on smartphones in South Africa

RedViking

Nord of the South
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Feb 23, 2012
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Good thing when importing from China the phone is valued at 30-50$ no matter the actual price.
 
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I'm not sure the need to add "smartphone" the HS code is pretty clear:

85.17 Telephone sets, including telephones for cellular networks or for other wireless networks
I'm guessing the new wording is designed to catch tablets.

A brief list of things that will go up by 2%:

Perfume
Makeup
Fireworks
Fur clothes
Air conditioners
Cellphones and telephones
Audio recording and reproducing apparatus(mics, amps, speakers etc)
Video recording and reproducing apparatus(video cameras, TV's, monitors, tv-boxes, projectors)
Radio recording and reproducing apparatus
Video game consoles and machines

Underlined what people likely care about on here. There's more as well including guns and vehicles. This is NOT CONFIRMED however, SARS still need to take this info in and make new tariff sheets, dunno when this will happen.
 

reactor_sa

Executive Member
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Feb 6, 2009
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7,561
Dang, phones going up 1+9%!
Good thing I picked up a pixel 2xl from overseas
 
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Why don't they just take our salaries? Because they tax the **** out of us...
Well, yeah, these are the traits of a failed government. Much like the last few kicks of a dying horse. They have no other option and will grab as much as they can - probably not for use in the country, but eventually to line the pockets of cadres before the total collapse comes.
 
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The problem with the ANC is that they are now going into a period of a few months in which they hope and pray more investors and businesses would flock to SA and help restoring the economy. From what I have read on a number of business forums abroad, these people are still not interested in SA and bringing their money here. In fact, many are still busy pulling out investments from the JSE while they still can save what they can.

With these type of taxes on the wealthy and businesses, most of the biggest investors and companies are steering clear of SA. The smaller companies also know that the general public are being taxed to an extent that no business would be sustainable in the medium to long term.

In the meantime, a lot more 'wealthy' locals are fleeing the country. If the ANC thinks they had a tax deficit this year, they should just wait and see how big it will be next.

The ANC will realize this in the next 5-8 years and it will be interesting to see what their reactions would be.
 

Bryn

Doubleplusgood
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Oct 29, 2010
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14,578
The billions we routinely read about being needed to sort out inept state-owned companies seem to exceed the budget deficits being discussed these years. Sucks knowing all these new taxes don't leave us any better off and we're basically just trying to tread water.
 

Swa

Honorary Master
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May 4, 2012
Messages
21,264
I have no problem with taxing luxury goods but what's luxury exactly? A tv, phone and car is a necessity. A 999", Ferrari and iPhone isn't though. But this is SA. Rand goes up so we increase tax to cancel out the shortfall. Luckily my 10" monitor will be in the country well before that which is actually a necessity for trading. Now just watch if they try to convince me it's actually a mini tv.

Why don't they just take our salaries? Because they tax the **** out of us...
Don't give the commies any ideas.

The problem with the ANC is that they are now going into a period of a few months in which they hope and pray more investors and businesses would flock to SA and help restoring the economy. From what I have read on a number of business forums abroad, these people are still not interested in SA and bringing their money here. In fact, many are still busy pulling out investments from the JSE while they still can save what they can.

With these type of taxes on the wealthy and businesses, most of the biggest investors and companies are steering clear of SA. The smaller companies also know that the general public are being taxed to an extent that no business would be sustainable in the medium to long term.

In the meantime, a lot more 'wealthy' locals are fleeing the country. If the ANC thinks they had a tax deficit this year, they should just wait and see how big it will be next.

The ANC will realize this in the next 5-8 years and it will be interesting to see what their reactions would be.
Unfortunately it doesn't matter how good the economy is as nobody wants to invest in a country where hooligans will trash your shops over a tshirt. Many are saying they had no choice but to increase taxes but it was the worst thing they could do. The correct course would have in fact been to lower taxes and increase tax relief. It might go bad in the first few years with a bigger deficit and more debt but it would have resulted in unparalleled economic growth in a decade or two.
 
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reactor_sa

Executive Member
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Feb 6, 2009
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7,561
No they already had a 7% on them
Not according to the article, or what am I missing?

"Ad valorem products include motor vehicles, electronic equipment, cosmetics, perfumes, and other products generally regarded as luxury items.

However, Gigaba said this list will now include smartphones."
 

Swa

Honorary Master
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The article is confusing. There's different categories within categories. Electronics used to be taxed but not at the full rate except if there were local equivalents. Now smartphones seem to fall within those categories.
 
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Not according to the article, or what am I missing?

"Ad valorem products include motor vehicles, electronic equipment, cosmetics, perfumes, and other products generally regarded as luxury items.

However, Gigaba said this list will now include smartphones."
They've always been caught with it as I said in my first post, not sure why it needs clarification.

Electronics used to be taxed but not at the full rate except if there were local equivalents.
There's local equivalents because the items are taxed, they're not protection taxes but "luxury goods" taxes.
 

Swa

Honorary Master
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May 4, 2012
Messages
21,264
They've always been caught with it as I said in my first post, not sure why it needs clarification.



There's local equivalents because the items are taxed, they're not protection taxes but "luxury goods" taxes.
So what you're saying is that South Africa once again can't compete on the international front and need these taxes for protection essentially.
 
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