Indian Government Unwilling to Give Tax Incentives to Apple for Setting up iPhone Manufacturing Unit

iPhone 6 Launch India

Apple recently asked the Indian government to provide it with some tax incentives so that it can set up an iPhone manufacturing unit in the country. However, the Indian government does not seem too keen on offering Apple with any such incentives.

As per Trade Minister Nirmala Sitharaman, if India ends up offering tax incentives to Apple, they would likely have to end up giving similar concessions to other smartphone manufacturers as well.

Trade Minister Nirmala Sitharaman said if India were to agree to any concessions, they would likely apply to all smart phone manufacturers, and not just Apple

Apple has been interested in opening its direct retail stores in India, but to do that the company needs to first start sourcing at least 30 percent of the components used inside its devices locally. Apple was also keen on selling its refurbished iPhones in India, but the proposal was denied by Prime Minister Narendra Modi. Instead, the Indian government wants Apple to set up an iPhone manufacturing plant in India for which Apple had asked for some tax incentives and relaxed labelling laws.

A previous report from Times of India claimed that Apple will start assembling iPhones in India from as early as April 2017. However, the manufactured iPhones will only be sold in India by Apple, with the company having no plans to export them to other countries. By locally assembling iPhones, Apple is hoping to save the 12.5% duty that it currently has to pay on importing iPhones in India.

[Via Reuters]

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