The good news in the budget – apart from it actually happening – is that there will finally be a decrease in tax on smartphones.

As always with government tax breaks, there are some conditions.

Budget smartphones should get cheaper

“Government proposes that as of 1 April 2025 this duty rate be applied only to smartphones with a price paid greater than R2,500 at the time of export to South Africa,” the treasury’s budget statement reads.

This will “enhance smartphone affordability at the lower end of the price spectrum and support efforts to promote digital inclusion for low-income households”, it says.

The global umbrella body GSM Association has long argued that doing away with VAT on smartphones will bring their cost down. It seems the South African government has heard.

While this may help many potential smartphone users, the GSMA argues that the removal of such import duties would help spur digital economies in various markets.

Right now, let’s take the win.