US tech giant Apple is seeking lower tariffs for smartphone makers in the country, reported Financial Express.
The tech giant wants the Indian government to come up with a sector-specific policy to boost smartphone exports and address “disabilities” vis-a-vis China and Vietnam, sources told the newspaper.
The iPhone maker, the report said, has sought a globally “competitive tariff regime” that will enable manufacturers to export and sell smart-phones in the domestic market from a single facility.
The development comes at a time when authorities are looking forward to only allow imports of only telecom components that are not available in India at zero or concessional duties provided the finished products are re-exported.
The news also highlights the high tariff rates in the country that often hinders moves by manufacturers to set up plants in the country. According to the report, large foreign companies in India have to pay as high as 43.68 percent tax, whereas same companies in Vietnam enjoy preferential tax rates of 10 percent for 15 years or 17 percent for 10 years, compared with the regular rate of 20.