Apple is unlikely to get the abolition of customs duties and tax holidays for 15 years, asks India
25.01.2017 Erika J. Wells 0 Comments
Apple is determined to start production of iPhone in India, but is seeking major concessions from local authorities. The company is asking the government important concessions in return for what will soon begin to produce their products in the country.
As it became known on Thursday is to meet Apple representatives with officials of India. Now says that the authorities likely to refuse American Corporation in its requests for the abolition of customs duties and tax holidays.
“As there is a serious correlation between value-added and job creation, the first remains a priority for us. Make in India will suffer if every foreign player will start to demand concessions without the actual creation of added value” — leads the official source Financial Express.
The most expensive company on the planet asks about a number of financial concessions in India, one of the poorest countries in the world. In particular, Apple wants to have her exempted for 15 years from the payment of tax on import of electronic components and 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 Apple stores. The government insist that Apple, like other General retailers, have about 30% of its components to buy in the local market. However, India went on the relaxation of the rules and gave technology companies three years to meet the requirements.
However, Apple wants more. According to local media reports the iPhone maker is seeking exemption from duties on the import of raw materials, components and production equipment. It is known that Apple will not insist on the implementation of all the items in the list. Comments from the Corporation on this matter followed.