Govt unlikely to accept Apple’s import tax reduction demand

The Indian government is unlikely to accept Apple Inc’s demand over the increase in import taxes on mobile phone parts. Apple Inc had recently requested the government not to increase the import taxes as the company is planning to expand its iPhone manufacturing in the country.

According to reports, Apple is seeking “pre-requisites” government tax breaks and incentives for expanding its operations in one of the world’s fastest-growing smartphone markets.

“Apple has conveyed it wants India to defer an existing policy that plans to levy taxes on more imported mobile components in line with Prime Minister Narendra Modi’s “Make in India” drive to boost domestic manufacturing,” the reports said.

Apple feels that India still lacks an ideal ecosystem for parts makers to thrive. A research data shows that about 90 percent of the $14 billion worth of mobile components is imported.

“Apple wants duty-free imports of components, India wants indigenization,” a source said.

As per government officials, although Apple Inc has been invited in India to invest, the government cannot do things that go beyond their policies.

An official estimate shows that about 5,000-10,000 jobs in India would be created as and when Apple expands in India.