The Government of India has Reportedly Rejected Apple's Key Demands for Starting Full-Pledged Manufacturing
According to a new report from India today, the Indian government has surprisingly rejected Apple's key demands regarding special tax incentives that it was seeking to expand manufacturing in that country. Technically, the report notes a senior official said that "India has not accepted 'most of the demands' on tax incentives that Apple Inc. had sought for establishing a manufacturing base in the South Asian nation," and that the government would shift focus to the rejection's fallout on the iPhone-maker's local assembly plans.
The plant opening in Bengaluru, according to the Indian Times will not be affected as the concession demands do not pertain to that plant.
India has earlier said that it is not possible to give exemption to individual companies especially as the Goods and Services Tax take affect later this year. Revenue Secretary Hasmukh Adhia told the Times that "There is no way we can give individual exemptions under the GST regime."
Apple had sought the concessions from the government to incentivize the high-end component manufacturers of iPhones to move to India, because without their presence, it will be difficult for Apple to start full-pledged manufacturing operations locally.
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