Monday, February 28, 2011

Prices of Computer Monitors in South Africa Set to Rise

computer monitorOne doesn't typically hear a lot of news about computer monitors in South Africa, but today we have some very interesting news on that very subject. According to the country's National Treasury, the prices of computer monitors in the country are set to increase as a part of the National Treasury's new plan.

South Africa's National Treasury's plan is to re-introduce excise duties on monitors because they are quote "used as televisions" as well. The National Treasury recently unveiled its National Budget Review and it came with some bad news for all the tech lovers in the country.

According to the 2011 document of revenue trends and tax proposals, the government in South Africa will impose higher prices on computer monitors. In 2004, ad valorem excise duties were banned on monitors due to the assumption that they would be used as computer monitors. According to the document, "However, some monitors are also used as televisions, which are subject to ad valorem tax."

The National Treasury has declared that ad valorem excise duties will be reinstated on monitors at a flat rate of 7% and will take effect on April 1st, 2011. Hopefully this isn't a cruel April Fool's Day prank by the South African government.

Esquire MD Mohammed Cassim stated that this tax will definitely have an impact on pricing as the 7% is most likely to be simply added to the retail price of the computer monitors. Cassim also added that they tried to convince the government that the new tax on monitors wasn't the right path to follow but their pleas went unheard. Cassim advised South Africans to load up on their computer monitor needs before the new tax is introduced.

David Kan, CEO of Mustek, said that the statement on the introduction of a 7% ad valorem tax on computer monitors is far too vague. "We need to see on which tariff code this will be applicable. Currently, the PC LCD Monitor is using tariff code 8471.30.10 and LCD TV Monitors without a TV tuner are using the rebate item code 460.16/85.28. On imported devices, we pay import duty and ad valorem tax but we claim them back at the same time," Kan explained.

Kan went on to say that, "If tariff code 8471 attracts a 7% ad valorem tax, then all other computer peripherals will be levied with this tax which includes keyboards, mice, notebooks, complete desktop PCs, etc... This is why we need more details to make comments. SARS may introduce a new tariff code to make it clear." Kan also added that the line between PC LCD monitors and TV LCD monitors is already very vague. "Let's see if SARS will give us more information," he added.

Source: MyBroadband News - Computer monitor prices set to jump in SA

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kristy lucas said...

I think the main factor why computer products has high prices in African cities because of its dollar exchange rate.


Kristy of Metrixa Technology

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