The US tech giant Apple demanded the Indian government to provide it with some special tax incentives to set up iPhone manufacturing unit in the country. However, the Trade Minister Nirmala Sitharaman may not make any exceptions for the tech giant.
No Special Incentives to Apple:
As a part of expansion, Apple wants to open its own stores across the country. In reply, the Modi-led government asked the US Company to manufacture some of the components. In a bid to boost the iPhone sales in India, Apple agreed to set up the Indian manufacturing and sought tax concessions including lower import and manufacturing duties.
If we would remember, Apple CEO Tim Cook officially disclosed that the company has plans to enter the Indian manufacturing and retail space. However, if it needs to open the direct retail stores, the company should source at least 30% of the components locally. And thus, Apple wants the Indian government to offer special tax incentives for investments in SEZ to make iPhone handsets locally.
The Minister of State for Ministry of Commerce & Industry, Mrs. Nirmala Sitharaman expressed that if India were to agree to any special considerations, it would be applicable to all smartphone makers, and not just Apple. The Apple’s file is sent to the revenue department and the inter-ministerial panel of the trade, electronics and finance ministry would take a final decision.
Apple Wants Only Business?
Confirming the news, the American giant declined to comment. It is to remind that India refused to allow Apple’s proposal to import and sell refurbished handsets in India. And the company has been asked to support PM Narendra Modi’s Make-in-India campaign.