Apple asked India to offer lower taxes on iPhones as the company is planing to manufacture their sets in India. The mobile giant wrote to industry ministry last month to seek lower import and manufacturing duties. Apple Wants India to Offer Tax Concessions to Start Manufacturing in India
The concessions should remain same if the government introduce it’s goods and services tax which is expected to incorporate all present tariffs. The California-based iPad s and iPhones manufacturers are intensely trying to start process in the fastest growing phone market. The reason for this kick start is that growth has slowed down in countries such as China.
Apple Wants India to Offer Tax Concessions to Start Manufacturing in India
Apple competitors are selling cheap devices in $2 trillion Indian economy. The are producing devices in the country that could speed up the roll out of its retails stores to meet growing demands in one of the second most populated country of world.
Its application to start retail stores in India is rejected as the company didn’t fulfill local rules. To be made local the firm need at minimum 30 percent of components to sell through their own outlets. Apple has been manufacturing most of its devices in China but it doesn’t meet the criteria.
Spokesman of Apple in India and Mattu JP Sing who is spokeswomen at India’s Commerce and Industry Ministry didn’t respond to this. Prime Minister Narendra Modi does not want technology firms to sell product and take advantage of its vast consumer base without making their own capital investment.
She wants firms to make products in country in accordance with “Make In India” policy. The basic reason behind this is to earn benefits that is generated through ma manufacturing facilities and jobs.
The top company wants to start discussions with tax department related to future obligations on its India earnings. It requires good compensations compared to other economies where there devices are already manufactured.