DA Communications Minister Could Make Smartphones Tax-Free

DA+Communications+Minister+Could+Make+Smartphones+Tax-Free
The Democratic Alliance’s Plans for Communications and Digital TechnologyThe Democratic Alliance’s Plans for Communications and Digital Technology With the Democratic Alliance (DA) assuming control of the Department of Communications and Digital Technologies, potential changes in South Africa’s ICT landscape are anticipated. Key Points of DA’s ICT Policy: – Acknowledges the high cost of mobile devices as a barrier to digital inclusion. – Proposes reducing or eliminating taxes on specific mobile devices to lower costs. – Aims to provide affordable internet data, bridge the digital divide, and implement digital transformation across sectors. Specific Plans: Reducing Device Costs: The DA believes that smartphones are not luxuries but necessities in a digital economy. To reduce costs, they plan to: – Eliminate taxes on smartphones below a certain value. – Exempt devices from certain taxes or reduce rates for devices. – Consider tax-free or tax-reduced smartphones under R1000, such as the Mobicel Astro, Hisense U962, and Vodacom Kicka 6. Expanding Internet Access: To enhance internet connectivity, the DA plans to: – Accelerate the rollout of digital terrestrial television. – Implement government-led broadband initiatives. – Create more free public Wi-Fi hotspots. – Introduce a policy to ensure government websites and institutions provide free mobile data access. Other Recommendations: Additional plans outlined by the DA include: – Encouraging the development of local ICT industries and innovation. – Protecting user privacy and data security. – Promoting online education and skills development. – Establishing a platform for public consultation on ICT policies. By implementing these strategies, the DA aims to increase ICT use, bridge the digital divide, and drive South Africa’s digital transformation.

  • The Communications and Digital Technologies department is headed by a DA member, who influences DA policy.
  • The DA’s ICT policy describes that the high costs of smartphones and mobile devices increase the digital divide.
  • In the policy, the party outlines plans to reduce or eliminate taxes on certain mobile devices in South Africa to reduce these costs.

After the appointment of a multi-party national executive for the first time, someone other than the ANC has a chance to run the country. With the Democratic Alliance (DA) now in charge of the Department of Communications and Digital Technologies, we outline some of the potential plans it could work on over the next five years.

According to the party’s Information and Communications Technology Policy, which is likely to influence the decisions of Solly Malatsi, the newly appointed Minister of Communications, the DA aims to provide affordable internet data, bridge the digital divide and implement a digital transformation of government institutions, industries and the private sector.

Nothing is brand new here and the ANC has tried to achieve the same goals in different ways. It was recently revealed that the department under the current Deputy Minister of Communications Mondli Gungubele was working on a policy to provide free data to all South Africans.

One difference of opinion between the two parties is that the DA believes that while it is essential for any digital technology policy to provide internet access to as many households as possible, people need technology to access the internet and the South African population is predominantly mobile phone oriented.

This is also evident from the latest census from 2022, which shows that radio use is declining, but internet use is increasing dramatically. Furthermore, the main internet access for most South African households (60.5 percent) is via mobile devices, such as smartphones.

In its ICT policy, the DA outlines its plans to abolish government taxes on smartphones and other mobile devices, which the party no longer calls “luxury items” but a necessity to be included in South Africa’s increasingly digital economy.

Reference is made to a report by ICT Africa, which found that nearly 37 percent of respondents said they did not have access to the internet because they did not have an internet-enabled device.

“Another factor contributing to the cost of smartphones in the country, and in Africa as a whole, is the
high taxes that these devices entail. Therefore, measures are needed to reduce taxes and lower the rates paid
would make a significant difference in addressing the cost issue,” it explains, citing an article from Huawei South Africa.

“Smartphones below a certain value may also be exempted from any form of tax or duty. Taxes may also be removed or reduced from devices,” the DA’s policy reads.

The party hopes that “this will increase the uptake of ICT use.” It even outlines devices such as the Mobicel Astro, the Hisense U962 and the Vodacom Kicka 6 as smartphones under the R1000 price bracket that could be tax-free or tax-reduced.

These are devices brought to market by companies that have recognized the demand for cheaper devices, but overall the cost of smartphones still poses a barrier to greater mobile internet adoption – “which is a problem given that these devices can be a key enabler for escaping poverty.”

Other recommendations made by the party in its ICT policy that could be implemented by the Minister of Communications and Digital Technologies include accelerating the rollout of digital terrestrial television, rolling out government-led broadband initiatives, creating more free public Wi-Fi hotspots, introducing a national policy that ensures government websites, such as universities, schools and other institutions, no longer charge mobile data, and more.

(Image – Photo by Sayan Majhi on Unsplash)

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