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Make in India dreams of Apple run into tax hurdle

Apple Inc Demands Include Tax Concession And Several Other Policy Exceptions. Officials To Meet Apple Executives On Jan 25.

News Nation Bureau | Edited By : Apoorva Nawaz | Updated on: 19 Jan 2017, 11:20:06 AM
Make in India dreams of Apple run into tax hurdle

New Delhi:

Apple manufacturing its signature smartphone in India has hit a roadblock as some officials have thwarted at Apple's demand of tax concession, calling it unfair for other companies who are already manufacturing their products in India.   

As the spring deadline to launch the key project manufacturing is inching near, officials are mulling ways to keep the deal going amid Apple's long list of demands.

On Wednesday, Information and Technology Minister Ravi Shanker Prasad said that India would keep an 'open mind" in negotiations in the deal. The minister said that "We will very much like Apple to come and have a base in India". 

There is a difference in the stand of officials, some faction of officials say that it would be unfair to those companies who are already working in India if Apple Inc's long list of demand is accepted by the Indian government.

Apple Inc demands include tax concession and several other policy exceptions. Reuters quoted some official saying the government should make policies for the industry, not individual companies. 

"Apple is coming here because it sees a lucrative market, this is not a favour being done to India," quoted news agency Reuters as officials saying.

To solve the ongoing issues with demands of Apple Inch, the departments of industry, information technology and electronics, and finance will meet Apple executive on January 25  to consider the demands set out by the firm in India.

Apple Inc demand list

Here are few demands the smartphone maker have:
- Tax duty exemption on raw material and manufacturing, components, and capital for15 years for both domestic asnd export markets.

- It also demanded to import defective iPhones to repair and export them again. Currently, India allows phones to import phone that are not older than three years.

- It also wants some changes in India's Custom rules.

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First Published : 19 Jan 2017, 09:16:00 AM