Increased import tax on cellphones is a statutory industry-wise hike: Apple
Experts had said that the tax hike will hurt Apple the most as it imports 88% of its devices into India.business Updated: Dec 17, 2017 18:04 IST
Apple has responded to the reports that the Indian government’s decision to raise the customs duty from 10% to 15% on import of mobile phones will hurt the company.
“There is no comment on this as it’s a statutory industry-wise duty hike,” Apple told IANS.
The notification issued by the Department of Revenue under the Finance Ministry said customs duty will go up from 10% to 15% for mobile handsets.
Currently, Apple is assembling iPhone SE model at its Bengaluru facility with Wistron Corporation, its Taiwanese manufacturing partner. The Cupertino-based iPhone maker is also seeking tax relief and other incentives from the government to begin assembling more handsets in the country.
Experts say that with this decision, Apple has two choices.
“Apple will either have to increase the price of handsets or start assembling more in the country,” Tarun Pathak, Associate Director, Mobile Devices and Ecosystems, Counterpoint Research, had told IANS.
Domestic and some China-based manufacturers will not be affected as most of them are assembly a lot in the country, including South Korean giant Samsung. “They just need to rev up their assembly lines,” Pathak added.
First Published: Dec 17, 2017 14:40 IST