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South Africa to Remove Luxury Duty on Smartphones Under 2,500 Rand

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South Africa’s government has proposed removing the luxury excise duty on smartphones priced below 2,500 rand (approximately $136.37) starting from April 1, 2025. The move, announced in the National Treasury’s budget statement, aims to increase smartphone affordability for low-income households and promote digital inclusion across the country.

Currently, a 9% ad valorem excise duty is applied to smartphones, but this will only affect higher-priced devices once the proposal is implemented. This change is expected to significantly reduce the cost of entry-level smartphones, making them more accessible to a broader segment of the population.

Key Factors Behind the Proposal:

  • The proposal is part of South Africa’s efforts to encourage digital adoption, particularly among low-income groups.
  • By eliminating the duty for smartphones under 2,500 rand, the government aims to bridge the digital divide and enhance access to technology for underserved populations.
  • This initiative coincides with South Africa’s plan to phase out 2G and 3G networks by December 31, 2027, to make room for 4G LTE and 5G networks.

Concerns and Criticism:

Some critics expressed concerns that phasing out 2G and 3G networks might worsen the digital gap for low-income users, particularly those in rural areas who cannot afford the latest devices designed for faster networks. Communications Minister Solly Malatsi noted that the high cost of smartphones, partly due to the excise duties, has been a barrier to accessibility and that discussions with the Treasury were already underway to address this issue.

The move is expected to positively impact the country’s push for greater digital inclusion and accessibility in the coming years.

UK Allegedly Demands Apple Unlock Encrypted User Accounts

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British security officials have reportedly demanded that Apple create a ‘back door’ to access all content uploaded to the cloud by any Apple user worldwide, according to a report from The Washington Post citing sources familiar with the matter. This move, if confirmed, would mark a significant escalation in government efforts to bypass encryption protections put in place by major tech companies.

Apple is unlikely to comply with the demand and may instead discontinue encrypted storage services in the UK to uphold its commitment to user privacy, the report suggests. The UK Home Office has allegedly issued a “technical capability notice” compelling Apple to grant access to encrypted data. However, a spokesperson for the Home Office declined to confirm or deny the existence of such a notice, stating, “We do not comment on operational matters.”

This development adds to ongoing tensions between governments and tech companies over encryption policies. While law enforcement agencies argue that encryption hampers criminal investigations, privacy advocates and technology firms maintain that weakening security measures creates vulnerabilities that could be exploited by bad actors. Apple has consistently positioned itself as a defender of user privacy, resisting similar demands in the past.

The UK government has recently intensified scrutiny of major tech firms. In January, regulators launched an investigation into Apple’s and Google’s control over smartphone operating systems, app stores, and web browsers. This latest reported demand on Apple signals a broader effort by British authorities to exert influence over global technology policies, raising concerns about digital privacy rights beyond the UK.

Huawei Slashes Prices on Premium Devices During JD.com Promotion

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Huawei announced significant price cuts on several high-end devices, including smartphones, headphones, watches, and tablets, offering discounts of up to 3,000 yuan ($411) during a special promotion on JD.com. The “Super Brand Day” event, which took place over the weekend, saw Huawei reducing prices on its premium range of products, as part of a limited-time offer running from Saturday evening to midnight on Sunday. This move is part of Huawei’s ongoing efforts to boost sales and attract more customers amidst increasing competition in the tech market.