India government said likely to reject tax, trade concessions for Apple manufacturing deal...

Posted:
in AAPL Investors edited January 2017
The Indian government will probably reject Apple's requests for waiving taxes and duties on imports in exchange for setting up local manufacturing, reports claimed on Tuesday ahead of a Wednesday meeting between the company and government officials.




"Since there is a strong correlation between value-addition and job creation, value-addition remains a priority for us," said a government source quoted by The Financial Express. "The Make in India program would suffer if every foreign player starts to demand concessions without actually doing much of value addition here."

Make in India is a program launched by Prime Minister Narendra Modi, designed to encourage both local and multinational corporations to manufacture products in the country.

"Our policies are not specific to any company," the source reiterated. "Whenever they are changed, we will ensure all those who meet the specified criteria get the sops."

Apple is believed to have an extensive "wish list" of concessions, including a 15-year tax holiday on imported parts and equipment, and waivers on many import duties. At the same time the company is supposedly flexible, willing to forego at least some of its requests.

That could be important, as some in the Indian government are said to be resistant to offering Apple any concessions that wouldn't be extended to other companies, including rivals like Samsung and Xiaomi.

Wistron has allegedly been lined up as Apple's first Indian manufacturing partner, and might even be set to produce 2017 iPhones. If Apple is committed to the idea, however, it won't have as much negotiating power with the government, since phones would need to enter mass production by July to ship in September.

Comments

  • Reply 1 of 10
    Rayz2016Rayz2016 Posts: 3,808member
    sog35 said:
    What a horrible decision by India.

    They want to 'protect' local companies, but all they are doing is stopping advancement and quality jobs.

    If they give it to Apple then they have to give it to everyone. Should every foreign company be given a 15-year tax break on imported parts and equipment?

    I sometimes think Apple's focus on tax deals and clever financial instrumentation is being used as a replacement for new products. 
    edited January 2017
  • Reply 2 of 10
    sog35 said:
    What a horrible decision by India.

    They want to 'protect' local companies, but all they are doing is stopping advancement and quality jobs.
    Nah, there is a middle ground and this is just part of the process of getting there. It's like buying a car, negotiation can go as far as walking out of the dealer and they calling you back to sign.
    douglas bailey
  • Reply 3 of 10
    gatorguygatorguy Posts: 18,735member
    sog35 said:
    What a horrible decision by India.

    They want to 'protect' local companies, but all they are doing is stopping advancement and quality jobs.
    It won't matter except that Apple might realize a tiny less profit. They'll still build handsets in India for the India market because why? It's profitable. The end result is smart decisions for both India and Apple. 
    edited January 2017
  • Reply 4 of 10
    Rayz2016Rayz2016 Posts: 3,808member
    Something odd about that picture. 
  • Reply 5 of 10
    gatorguygatorguy Posts: 18,735member
    sog35 said:
    Rayz2016 said:
    sog35 said:
    What a horrible decision by India.

    They want to 'protect' local companies, but all they are doing is stopping advancement and quality jobs.

    If they give it to Apple then they have to give it to everyone. Should every foreign company be given a 15-year tax break on imported parts and equipment?

    I sometimes think Apple's focus on tax deals and clever financial instrumentation is being used as a replacement for new products. 
    No country gives equal tax breaks to all companies. You give bigger breaks to companies that will benefit your economy more
    Apparently that's what India means to do, so there's at least one. But a serious question for you:

    Since it's obvious Apple means to sell iPhones and open stores in the India marketplace why should India give them a handout (so to speak), to do what they were going to do anyway?  

    Looking forward to your answer. 
    edited January 2017
  • Reply 6 of 10
    gatorguy said:
    sog35 said:
    Rayz2016 said:
    sog35 said:
    What a horrible decision by India.

    They want to 'protect' local companies, but all they are doing is stopping advancement and quality jobs.

    If they give it to Apple then they have to give it to everyone. Should every foreign company be given a 15-year tax break on imported parts and equipment?

    I sometimes think Apple's focus on tax deals and clever financial instrumentation is being used as a replacement for new products. 
    No country gives equal tax breaks to all companies. You give bigger breaks to companies that will benefit your economy more
    Apparently that's what India means to do, so there's at least one. But a serious question for you:

    Since it's obvious Apple means to sell iPhones and open stores in the India marketplace why should India give them a handout (so to speak), to do what they were going to do anyway?  

    Looking forward to your answer. 
    Apple doesnt even want to open up factories in India, but they're being strong-armed into doing so. The Indian gov wont allow them to sell their phones diretly without having a manufacturing presence there. Jobs would've walked away from that highway bribe long time ago. 
    badmonk
  • Reply 7 of 10
    gatorguygatorguy Posts: 18,735member
    bostonrob said:
    gatorguy said:
    sog35 said:
    Rayz2016 said:
    sog35 said:
    What a horrible decision by India.

    They want to 'protect' local companies, but all they are doing is stopping advancement and quality jobs.

    If they give it to Apple then they have to give it to everyone. Should every foreign company be given a 15-year tax break on imported parts and equipment?

    I sometimes think Apple's focus on tax deals and clever financial instrumentation is being used as a replacement for new products. 
    No country gives equal tax breaks to all companies. You give bigger breaks to companies that will benefit your economy more
    Apparently that's what India means to do, so there's at least one. But a serious question for you:

    Since it's obvious Apple means to sell iPhones and open stores in the India marketplace why should India give them a handout (so to speak), to do what they were going to do anyway?  

    Looking forward to your answer. 
    Apple doesnt even want to open up factories in India, but they're being strong-armed into doing so. The Indian gov wont allow them to sell their phones diretly without having a manufacturing presence there. Jobs would've walked away from that highway bribe long time ago. 
    Dang, Apple is being strong-armed into selling for profit, but has to follow the same rules as other smartphone manufacturers who already set up factories in India. What a conundrum! 
    singularitysree
  • Reply 8 of 10
    sreesree Posts: 67member
    sog35 said:
    Rayz2016 said:
    sog35 said:
    What a horrible decision by India.

    They want to 'protect' local companies, but all they are doing is stopping advancement and quality jobs.

    If they give it to Apple then they have to give it to everyone. Should every foreign company be given a 15-year tax break on imported parts and equipment?

    I sometimes think Apple's focus on tax deals and clever financial instrumentation is being used as a replacement for new products. 
    No country gives equal tax breaks to all companies. You give bigger breaks to companies that will benefit your economy more
    Think that is against international trade rules in general.
  • Reply 9 of 10
    crowleycrowley Posts: 5,430member
    sree said:
    sog35 said:
    Rayz2016 said:
    sog35 said:
    What a horrible decision by India.

    They want to 'protect' local companies, but all they are doing is stopping advancement and quality jobs.

    If they give it to Apple then they have to give it to everyone. Should every foreign company be given a 15-year tax break on imported parts and equipment?

    I sometimes think Apple's focus on tax deals and clever financial instrumentation is being used as a replacement for new products. 
    No country gives equal tax breaks to all companies. You give bigger breaks to companies that will benefit your economy more
    Think that is against international trade rules in general.
    Not sure about that, but it's definitely against EU rules, hence Apple's woes in Ireland.
    singularity
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