Apple asks India tax holidays for 15 years and the abolition of customs duties on raw materials and equipment
20.01.2017 0 Comments
Apple ready to open iPhone production in India, but is seeking major concessions from local authorities. About it writes Bloomberg.
Next week Apple will hold a meeting with representatives of the Indian government about opening in 2017 the production of the iPhone in the country. Apple asks about a number of financial concessions from the government of India. In particular, the company wants to be exempted for 15 years from the payment of tax on import of electronic components and equipment.
“We’d like to see Apple set up production base in India,” said Minister of communications and information technologies of the country, Ravi Shankar Prasad, without revealing information about the negotiating position of the company.
In India there is a government initiative that allows foreign companies to open brand stores, if they produce at least 30% of its production in the country. Apple is the only company granted the right to open retail network without having local production. But the resolution was issued with the condition that within 2-3 years, the Americans still to start producing smartphones in India.
Production should start in April, but, as it became known, Apple has its requests to the government of India. Ahead of the meeting scheduled for 25 January, which will be attended by officials from several ministries, including electronics and information technology, and trade, the company sent to the Indian side a list of their suggestions.
According to a source confidential, Apple asks to release it from the payment of customs duties for imported to India new and former in the use of equipment. Even cupertinos want the abolition of duties on raw materials and components. According to network sources, Apple is seeking a complete exemption from duties on imported components and production equipment.
Apple is seeking to strengthen its business in India, a country with a population of 1.3 billion people, which is becoming the fastest growing smartphone market in the world amid slowing sales in the United States and China. In may 2016 CEO Tim cook visited India on an official visit, to seek permission of the authorities to open the country’s shops.
The government of India has not previously granted any concessions for other companies, which went to the local market.
I should add that the iPhone may be launched at the company Wistron near the Indian city of Bangalore. In the future, depending on the level of demand for the production of Apple devices in India can connect and Foxconn.