07:25 AM EDT, 10/15/2025 (MT Newswires) -- Apple ( AAPL ) is lobbying India's government to change its income tax law to avoid being taxed for owning high-end iPhone production machinery provided to its contract manufacturers, Reuters reported Wednesday, citing unnamed sources.

The effort comes as Apple ( AAPL ) is growing its manufacturing footprint in India, the report said.

According to expert estimates, Apple ( AAPL ) could face billions of dollars in additional taxes if it modifies its business model without changes to a 1961 Indian law governing foreign ownership of locally used equipment, according to the report.

In China, Apple ( AAPL ) provides manufacturing machinery to its contractors without incurring taxes, but India's Income Tax Act could treat such ownership as a "business connection," potentially making Apple's ( AAPL ) iPhone profits taxable in India, Reuters reported, citing a senior government official and two industry sources.

According to the report, Apple ( AAPL ) executives met Indian officials in recent months to push for the change. "If the legacy law is changed, it will become easy for Apple ( AAPL ) to expand," one industry source was quoted as saying.

An unnamed senior Indian official said "discussions on taxation rules impacting Apple ( AAPL ) are ongoing," Reuters reported. However, the official said Indian government is cautious about changing the law as it could affect its ability to tax foreign companies. Reuters said India's IT and finance ministries did not respond to its requests for comment.

Apple ( AAPL ) did not immediately respond to requests for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)