South Africa’s National Treasury unveiled its National Budget Review today, and with it came some bad news for tech enthusiasts.<\/p>\n
According to the treasury’s 2011 ‘Revenue trends and tax proposals’ document Government will re-introduce excise duties on computer monitors.<\/p>\n
Ad valorem excise duties on monitors were abolished in 2004 based on the assumption that they were used as computer screens. “However, some monitors are also used as televisions, which are subject to ad valorem tax,” the document states.<\/p>\n
The National Treasury stated that ad valorem excise duties on monitors will be reinstated at a flat rate of 7 per cent. These amendments will take effect on 1 April 2011.<\/p>\n
Esquire MD Mohammed Cassim said that this tax will have a definite impact on pricing as the 7% is likely to simply be added to the retail price of computer monitors.<\/p>\n
Cassim added that they tried to convince Government that this tax on monitors is not the correct route to follow, but their pleas fell on deaf ears.<\/p>\n
Cassim advised customers to stock up on their computer monitor needs before the new tax is introduced in April 2011.<\/p>\n
Computer monitor prices set to jump in SA<\/strong><\/a> << Comments and views<\/p>\n