The South African National Treasury announced yesterday that a 7% ad valorem tax will be reinstated on computer monitors, but according to Mustek CEO David Kan, it can be legally avoided.
When the announcement was made yesterday it was unclear how the tax was going to be levied. According to Kan this has become a bit clearer.
“Since 2007, PC Monitor’s tariff code has been changed to 8528,” explained Kan. It is on this code that the 7% ad valorem tax will be levied.
He added that LCD TV monitors without TV tuners currently use rebate item code 460.16/85.28 to claim back the import tax.
“On importation we pay import duty and ad valorem tax but we claim them back on the same time,” explained Kan.
However, according to Kan, a PC monitor can also be classified under “Video Monitor” as long as an SABS certificate can be produced to prove that the monitor has more than 600 resolution lines and has a video input port such as DVI, DV, or HDMI.
“Such PC Monitors can then be imported as Video Monitors, which is under rebate item code 460.16 and avoid this 7% ad valorem tax, legally,” concludes David Kan
PC monitor tax can be legally avoided << Comments and views
Article courtesy of MyBroadband – PC monitor tax: It can be avoided (legally)
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