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South Africa proposes tax on electrical goods

South Africa proposes tax on electrical goods

CAPE TOWN: The Department of Environmental Affairs has proposed an environmental levy or tax in South Africa on all goods which have an electrical plug.

Government has proposed a levy or tax on all products that have an electrical plug, which will lead to price increases on electrical goods.

This levy, said Department of Environmental Affairs spokesman Albi Modise, is aimed at managing the disposal of electrical products after they are no longer used.

The new levy or tax is therefore a way to get funds to limit harm to the environment by electrical equipment.

Modise said that the department is planning to improve the “management of various waste streams”, which includes electrical equipment. The department has not yet confirmed or denied that the planned environmental levy would be 10%.

This additional tax on electrical goods will be passed on to consumers, which will result in an increase in the price of electrical products,

This was seen earlier this year when government introduced VAT on digital goods sold in South Africa.

Many digital goods suppliers, including Apple, informed consumers that there was an upward adjustment of prices to account for the 14% value added tax being charged on digital goods.