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I doubt that the taxes from import of electronics is significant enough for it to be a 'great deal' for the Indian Government. I think their intended purpose is
by hannofcart 6y ago
I doubt that the taxes from import of electronics is significant enough for it to be a 'great deal' for the Indian Government. I think their intended purpose is to promote/protect local manufacturing.
- 908B64B197 6y agoI get the protectionist aspect, but are they re-investing the money from this tax to make manufacturing desirable in the country? We're talking logistics improvement, stable electric grid, infrastructure and training programs to get an educated workforce. Or is it just contributing to some bureaucrat's pension fund? In the same vein, I 100% agree with fuel taxes and green taxes... if the government can demonstrate 100% of the tax goes to finance alternatives that are useful to me.
- fomine3 6y agoAnyway India market is huge so big corps want to sell products. Apple ordered ODMs to build factory in India. The tax works.
- hannofcart 6y agoSo does this mean that presumably, going forward, when the factory starts working at full capacity, the taxes imposed will be lower, and hence Apple products will be cheaper in India?
- 908B64B197 6y agoIt should, since they'll be able to claim (rightfully) that some of it was manufactured in India. Depending on the costs of manufacturing, the price of might not go down by much however, or Apple might keep the difference.
- hannofcart 6y agoTo be clear, I was just pointing out what the intention behind the taxes were. I was not voicing an opinion on whether such protectionist policies actually work. (They seldom do).
- naruvimama 6y agoWhat they do with the money is up to the citizens, it is they who pay the taxes and not Apple.