Increased customs duty a statutory industry-wise hike, says Apple

Apple

New Delhi, Dec 16: A day after the finance ministry decided to increase the customs duty from 10 per cent to 15 per cent on mobile phone, tech giant Apple said its is a statutory industry-wise hike.

“There is no comment on this as it’s a statutory industry-wise duty hike,” an Apple official told IANS.

The notification issued by the Department of Revenue said customs duty will increase from 10 per cent to 15 per cent for mobile handsets.

At present, Apple is assembling iPhone SE model at its Bengaluru facility in collaboration with Wistron Corporation, its Taiwanese manufacturing partner.

The Cupertino-based iPhone maker is also seeking tax relief and other incentives from the central government to commence assembling more handsets in the country.

Experts say that with this decision, Apple has two choices.

“Apple will either have to increase the price of handsets or start assembling more in the country,” Tarun Pathak, Associate Director, Mobile Devices and Ecosystems, Counterpoint Research, had told IANS.

However, domestic and some China-based manufacturers will not be affected as most of them are assemble a lot in the country, including South Korean giant Samsung.

“They just need to rev up their assembly lines,” Pathak further added.

WeForNews

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