Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      SABC+ scales up

      SABC+ scales up

      3 August 2026
      The Post Office has fixed its books but not its business

      The Post Office has fixed its books but not its business

      3 August 2026
      SA companies could face cross-border crypto ban

      SA companies could face cross-border crypto ban

      3 August 2026
      SA experts split on whether the singularity has begun

      SA experts split on whether the singularity has begun

      3 August 2026
      Telkom's prepaid growth is running on credit - Serame Taukobong

      Telkom’s prepaid growth is running on credit

      3 August 2026
    • World
      Meta AI will now tell parents if their teen is in crisis

      Meta AI will now tell parents if their teen is in crisis

      17 July 2026
      IBM shares crash 25% as AI upends software spending - Arvind Krishna

      IBM shares crash 25% as AI upends software spending

      15 July 2026
      Jony Ive's first OpenAI device: an AI smart speaker - Jony Ive and Sam Altman

      Jony Ive’s first OpenAI device: an AI smart speaker

      15 July 2026
      Stripe, Advent in talks to buy PayPal for $53-billion

      Stripe, Advent in talks to buy PayPal for $53-billion

      15 July 2026
      Memory crisis sends smartphone market into steep decline

      Memory crisis sends smartphone market into steep decline

      13 July 2026
    • In-depth
      The plan to stop AI from breaking the world - Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
    • TCS
      TCS+ | Why South African workers must become supervisors of digital labour - Accelera Digital Group Cliff de Wit

      TCS+ | Why South African workers must become supervisors of digital labour

      31 July 2026
      TCS | Rapid deployment rules can't work without municipalities: ACT - Nomvuyiso Batyi

      TCS | Icasa’s rules skip the real bottleneck: ACT

      30 July 2026
      TCS+ | iStore Business on why Apple makes sense for SMEs - Sudesh Pillay and Tamia Nontsikelelo

      TCS+ | iStore Business on why Apple makes sense for SMEs

      30 July 2026
      TCS+ | A smarter approach to cloud for South African businesses - Joel Chacko and Jonathan Oaker

      TCS+ | A smarter approach to cloud for South African businesses

      28 July 2026
      TCS | How Optasia lends billions to people banks can't see - Salvador Anglada

      TCS | How Optasia lends billions to people banks can’t see

      23 July 2026
    • Opinion
      The author, Jannie van Zyl

      Selling vapour is corporate suicide in slow motion

      16 July 2026
      Brazil's online gambling crackdown is a lesson for South Africa

      How Amazon outmanoeuvred Starlink in South Africa

      15 July 2026
      The Popia problem with agentic AI - Herman Haasbroek

      The Popia problem with agentic AI

      14 July 2026
      The author, Fanie van Rooyen

      South Africa can still catch the AI wave – here’s how

      7 July 2026
      The author, Fanie van Rooyen

      The AI utopia South Africa can’t afford

      1 July 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM Telecom
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Gov’t to tax Internet use

    Gov’t to tax Internet use

    By Editor31 March 2013
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Finance minister Pravin Gordhan
    Finance minister Pravin Gordhan

    It looks likely that Internet users will have to tighten their belts from next year. Finance minister Pravin Gordhan has raised the idea of introducing a tax on broadband use from 2014. The minister has suggested that a rate of 50c/MB should apply, with a built-in escalation in the rate in subsequent tax years.

    The proposal would mean that a mobile user who consumes on average 500MB of data per month can expect to pay an additional amount of R250/month for access to the Internet. For example, Vodacom’s “broadband standard” bundle of 500MB, which currently costs R149/month, would rise to R399 under Gordhan’s proposal.

    Good news for heavy users of the Internet, however, is that the minister has mooted a sliding scale for the new broadband tax. If consumers use between 1GB/month and 5GB/month, they’ll pay 35c/MB for every megabyte above 1GB. For those using more than 5GB, the rate falls to 25c/MB for every megabyte above 5GB.

    “In the current tight economic conditions, where the South African Revenue Service is struggling to meet its targets for revenue collection, we have to find ways of making up for the shortfall,” Gordhan says in a statement.

    The move comes just weeks after the minister announced in his budget speech in parliament that government intended imposing Vat on the online purchase of digital goods such as music, e-books and computer games.

    “It is proposed that foreign businesses that sell e-books, music and other digital goods and services should be required to register as Vat vendors in line with regulations which have been adopted by the European Union and other jurisdictions,” Gordhan said in the budget speech.

    The move provoked criticism from tax experts, who said it would be difficult to monitor such downloads, pointing to the fact that many South African consumers already get content from the US or European versions of services such as Spotify and Apple’s iTunes Store.

    Internet service providers (ISPs) have reacted angrily to the proposed broadband tax, saying that the cost of fixed-line services already makes it difficult to attract new customers.

    “Consumers are going to expect ISPs to absorb the effects of this new tax,” says Internet Solutions MD Saki Missaikos. “Given how slim the margins are already in providing broadband services to consumers, this is crazy. Consumers are going to feel the pinch the most.”

    Missaikos says the move is also likely to have an impact on government’s goal of providing universal access to broadband by 2020. “This is an extremely price-sensitive market. You can’t double or treble prices and still expect greater uptake from consumers.”

    Afrihost CEO Gian Visser says government has failed to undertake any consultation with key industry players or consumer bodies around the proposed tax and expects strong opposition. “Internet access should be a right, but now government is making it even more of a privilege.”

    A spokesman for national treasury was not immediately able to say how the proposed tax, which would be measured on a per-megabyte basis, would apply to those with uncapped Internet accounts. He suggested a flat tax levy of between R500/month and R1 000/month on uncapped broadband accounts could make sense.

    The Internet Service Providers’ Association, meanwhile, has expressed “amazement and disappointment” at the plans. When reached for comment early on Monday, the industry body’s regulatory adviser, Dominic Cull, asked: “Is this some sort of joke?”  — (c) 2013 NewsCentral Media

    • This was TechCentral’s April Fool’s Day article for 1 April 2013. Were you caught out?
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Afrihost Dominic Cull Gian Visser Internet Solutions Ispa Pravin Gordhan Saki Missaikos Vodacom
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleZATS: Ep 251 – ‘Chatty’
    Next Article Start-up Ledula: making classifieds social

    Related Posts

    Telkom's prepaid growth is running on credit - Serame Taukobong

    Telkom’s prepaid growth is running on credit

    3 August 2026
    TCS+ | A smarter approach to cloud for South African businesses - Joel Chacko and Jonathan Oaker

    TCS+ | A smarter approach to cloud for South African businesses

    28 July 2026
    Vodacom scales back dividend policy to fund growth push - Shameel Joosub

    Vodacom scales back dividend policy to fund growth push

    27 July 2026
    Company News
    Google Cloud, AI adoption gain momentum in Africa - Digicloud Africa

    Google Cloud, AI adoption gain momentum in Africa

    3 August 2026
    Domains.co.za launches self-hosted n8n VPS hosting

    Domains.co.za launches self-hosted n8n VPS hosting

    31 July 2026
    Smarter.tech '26 shows why smarter technology begins with context - Obsidian Systems

    Context is the missing piece in enterprise AI: Obsidian

    31 July 2026
    Opinion
    The author, Jannie van Zyl

    Selling vapour is corporate suicide in slow motion

    16 July 2026
    Brazil's online gambling crackdown is a lesson for South Africa

    How Amazon outmanoeuvred Starlink in South Africa

    15 July 2026
    The Popia problem with agentic AI - Herman Haasbroek

    The Popia problem with agentic AI

    14 July 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    SABC+ scales up

    SABC+ scales up

    3 August 2026
    The Post Office has fixed its books but not its business

    The Post Office has fixed its books but not its business

    3 August 2026
    SA companies could face cross-border crypto ban

    SA companies could face cross-border crypto ban

    3 August 2026
    SA experts split on whether the singularity has begun

    SA experts split on whether the singularity has begun

    3 August 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}