India’s government ‘likely’ to reject Apple’s requests for cuts in taxes, import duties

India’s government is likely to reject Apple requests for cuts in taxes and import duties, according to The Financial Express. Officials from the Cupertino, California-based company are scheduled to meet senior officials from various ministries on Wednesday. 

Officials from India’s departments of commerce, industrial policy and promotion (DIPP), revenue, environment and forest, electronics and information technology (DeITY) will reportedly take part in the discussions. In a communication to the government, Apple has asked for several tax and other incentives, including long-term duty exemptions, to enter the manufacturing sector in India. 

In December it was reported that Apple wants the government of India to relax labelling rules so that it doesn't have to print product-related information directly onto devices to avoid cluttering up their minimalist design. That’s one of the concessions Apple has sought after expressing its intention to according to The Economic Times.

India’s finance ministry rejected an earlier proposal by Apple to set up wholly owned outlets in the country that sought exemption from the compulsory 30% local sourcing norm. The company had sought the exemption on the grounds that it was bringing “state-of-the-art” and “cutting-edge technology,” making it difficult to meet the sourcing condition.

In June 2016 it was reported that India wants a commitment from Apple to bring manufacturing facilities to the country before the government will approve the company’s request to open its own retail stores. Getting a foothold in India has been a challenge for Apple. The company has opened its retail stores in a number of countries around the world, but not in India. The country has restrictive real estate investment laws for foreign companies.