India Moves to Extend Tax Break Apple Lobbied For

[MacRumors]

India has proposed extending tax breaks until 2041 for foreign companies that supply machinery to their contract manufacturers, handing a win to Apple as it expands iPhone production in the country, Reuters reports.

Introduced in February, the exemption previously ran only until 2031, and Apple had long since lobbied against being taxed on the high-end iPhone machinery it owns in India. The draft bill still has to be passed by both houses of parliament.

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Article Link: India Moves to Extend Tax Break Apple Lobbied For

 

[artifex]

Eh. How likely is it that Apple can quickly find other countries with a competitive labor force to move to, if India's proved cheaper and more politically favorable than China, Vietnam, etc., so far? And what's the value of the taxes that India is giving up? If anything, this gives Apple more time to line up companies elsewhere to hold over India when 2041 comes around and they bargain once again.

Also: the Reuters article says this only affects factories inside the customs-bonded areas, where goods are created for export use. Which sounds good at first, but it means that Indian consumers will not benefit fully from the reduced cost of manufacture, because those goods will be treated as imports if sold locally.

 

[S.B.G]

Tax breaks for an almost $5 trillion company. 🤷‍♂️

 

[swapmanager]

But Apple will price their iPhones and iPads the highest. Government needs to weight in on this issue too.

 

[Unregistered 4U]

Eh. How likely is it that Apple can quickly find other countries with a competitive labor force to move to, if India's proved cheaper and more politically favorable than China, Vietnam, etc., so far? And what's the value of the taxes that India is giving up? If anything, this gives Apple more time to line up companies elsewhere to hold over India when 2041 comes around and they bargain once again.

Also: the Reuters article says this only affects factories inside the customs-bonded areas, where goods are created for export use. Which sounds good at first, but it means that Indian consumers will not benefit fully from the reduced cost of manufacture, because those goods will be treated as imports if sold locally.

Apple doesn’t need a labor force, Foxconn does. When you read that Apple is having things manufactured in another country, it’s because Foxconn has set up shop in that country. So, to them, it’s a choice between doing business with Foxconn or doing business with Foxconn.

 

[axantas]

Tax breaks for an almost $5 trillion company. 🤷‍♂️

...and you as consumer - if you use their products.

 

[boswald]

I can't believe Apple hit $5 trillion. That's insane to me.

 

[Octavius8]

Apple lacks internal communication and sharing tools????.
iCloud architecture is sooooo old by now. Even does not have simple access control features at file system level??!!.
Innovative company?, yes, like BlackBerry… and now, at crazy high prices… the situation is not sustainable.

 

[rotvaldi]

But Apple will price their iPhones and iPads the highest. Government needs to weight in on this issue too.

Agree

 

[Jeeve Stubbs]

Fiscal dumping is a cancer that only benefits corporations to the detriment of populations.