Business
Apple lobbies India to change tax law seen hindering its expansion: report
Apple is lobbying India’s government to modify its income tax law to ensure the company is not taxed for ownership of high-end iPhone machinery it provides to its contract manufacturers, an issue seen as a hurdle to its future expansion, sources say.
The push coincides with Apple’s growing India presence as it diversifies beyond China. Counterpoint Research says iPhone’s share in the Indian market has doubled to 8 per cent since 2022. And while China still accounts for 75pc of global iPhone shipments, India’s share has quadrupled to 25pc since 2022.
India is the world’s second-largest mobile market. Apple’s contract manufacturers Foxconn and Tata have pumped in billions of dollars to open five plants, but millions of those expenses go into acquiring pricey machines for iPhone assembly.
Experts say Apple potentially faces billions of dollars in additional taxes if it changes its business practices without convincing New Delhi to change a 1961 law covering foreign ownership of equipment used in India.
In China, Apple procures the machines used to make iPhones and gives them to its contract manufacturers, and is not subject to tax even though it still owns them.
But that’s not possible in India as the Income Tax Act would consider such ownership by Apple as a so-called “business connection”, making the US firm’s iPhone profits liable for Indian taxes, said a senior government official and two other industry sources.
Apple executives have held talks with the Indian officials in recent months to tweak the law, as it fears the current legislation could hamper its future growth, said the sources.
“Contract manufacturers cannot put up money beyond a point,” said the first industry source. “If the legacy law is changed, it will become easy for Apple to expand … India can become more competitive globally.”
Reuters is the first to report Apple’s concerns and lobbying efforts on the law.
Apple did not respond to Reuters questions, and neither did India’s IT and finance ministries, which are involved in the discussions.
India cautiously reviewing Apple request
Smartphone manufacturing is a key plank of Prime Minister Narendra Modi’s agenda, and India’s deputy IT minister last year privately said China and Vietnam could race ahead as major smartphone export hubs due to their lower tariffs on phone parts.
A senior Indian official said “discussions on taxation rules impacting Apple are ongoing”, but New Delhi is cautious as any changes to the law could diminish its sovereign right to tax a foreign company.
“It’s a tough call,” said the official, who highlighted that Apple’s increased investments are equally important.
“India needs investments. We have to find a solution.”
Apple has since 2023 opened a handful of directly-owned retail stores in India, though it also sells its products through online and offline distributors.
Foxconn and Tata have, over the years, invested more than $5 billion in setting up Apple manufacturing.
Specialised equipment can cost billions
One precedent of Indian law often cited by tax experts involves UK-based Formula One. India’s Supreme Court held in 2017 that even though F1 did not own a circuit near New Delhi, it was liable to pay tax on profits for the days when it exerted full control during its Grand Prix India event.
If Apple were to own machines inside Indian iPhone factories, it would amount to exerting control under current laws, experts said.
“If the activities of Apple constitute a business connection, then the global revenue may be used as a basis to compute the income attributable in India, leading to billions in tax exposure,” said Riaz Thingna, a partner at Grant Thornton Bharat LLP.
Taiwan’s Foxconn is Apple’s largest contract manufacturer in India, having shipped products worth $7.4bn this year by August, compared to $7.5bn in all of 2024, commercially available customs data shows.
The income tax law, however, does not bother Apple’s South Korean rival Samsung, as almost all of its phones are made in its own Indian factories.
The India Cellular & Electronics Association (ICEA), which backs Apple, has, in a confidential representation to the government, called for changes to the law, saying tax certainty is “paramount for businesses seeking to expand and scale.”
“Typical CMs (contract manufacturers) are unable or unwilling to invest in such large quantities of specialised equipment … The cost of the equipment can rise to billions of dollars,” ICEA said, without naming any company.
“In certain cases, [it] may also be supplied … free of cost.”
Prime Minister Shehbaz Sharif announced on Sunday the reopening of new gas connections after a ban of nearly four years, state broadcaster Radio Pakistan reported.
His announcement comes less than two months after the federal cabinet decided in September to lift the ban on domestic gas connections and supply regasified liquefied natural gas (RLNG).
Speaking about the cabinet’s decision in a post-meeting press conference, Minister for Parliamentary Affairs Dr Tariq Fazal Chaudhry, flanked by Petroleum Minister Ali Pervaiz Malik, had said PM Shehbaz decided to lift the ban on new gas connections imposed in 2021, addressing a longstanding public demand.
Addressing a ceremony related to the resumption of RLNG connections in Islamabad today, the premier reiterated that the government’s decision was in response to the “long-standing public demand”.
“In 2022, there was immense public pressure for [new] gas connections but the government was facing challenges,” Radio Pakistan quoted him as saying.
But, “with this landmark decision, the public will now be able to access affordable and quality fuel,” he added.
“Now, RLNG will be supplied throughout the country to a large number of applicants,” a report by state-run APP quoted him as saying.
According to the reports, a video message by Malik was also played during today’s ceremony, in which the petroleum minister said the government was committed to providing maximum facilities to the public.
He added that the Sui Northern Gas Company had brought down its line losses to 4.93 per cent while earning a profit of Rs29 billion in the previous fiscal year.
ISLAMABAD: After a gap of nine months, the government has appointed Hamad Ali Mansoor as the new chief executive officer (CEO) of the Engineering Development Board (EDB).
Mr Mansoor’s appointment, in the MP-I scale, is for a three-year term. The position had been vacant since January, and the recruitment process was initiated through an advertisement issued on Nov 17, 2024.
According to the Ministry of Industries and Production, a total of 248 applications were received. Thirty-three eligible candidates were shortlisted and interviewed by the selection committee in February. The committee recommended a panel of three candidates in order of merit: Hamad Ali Mansoor, Akhtar Ahmad Bughio and Shakeel Zahid.
Established in 1995, the EDB functions under the Ministry of Industries and Production to promote, facilitate and regulate the engineering sector in Pakistan.
Mr Mansoor holds an undergraduate degree in mechanical engineering and an MBA from the Schulich School of Business, York University, Toronto. He has over three decades of experience in industrial policy, manufacturing and infrastructure development, with a focus on renewable energy and sustainable growth.
Published in Dawn, October 26th, 2025
ISLAMABAD: The PPP has reiterated its commitment to supporting the farming community and vowed to continue its struggle to end all injustices faced by the farmers.
“PPP remains committed to respecting, empowering, and reviving the agricultural sector for a prosperous Pakistan,” said the party’s Central Information Secretary Shazia Marri. She quoted PPP Chairman Bilawal Bhutto-Zardari as saying that no economy can be strong if its farmers are weak.
“Chairman Bilawal Bhutto-Zardari believes that strengthening the farmer means strengthening Pakistan itself,” Ms Marri said in a statement issued on Saturday.
Ms Marri said that Bilawal Bhutto-Zardari’s vision was clear — the true measure of progress lies in the prosperity of farmers. She recalled that during the PPP government, Pakistan had moved from wheat shortage to becoming a wheat-exporting country, owing to farmer-friendly policies.
She said that the PPP chairman had always stood by the farmers, advocating for timely procurement and fair prices.
Highlighting the impact of climate change, the PPP leader said that it posed a serious threat to every Pakistani farmer. She added that Bilawal Bhutto-Zardari emphasised the need for investment in sustainable and climate-resilient agriculture, envisioning a modern agricultural economy where small farmers could progress through technology and access to fair markets.
She said the PPP believed that insurance, credit access, and transparent governance were essential to protect farmers from the adverse effects of climate change.
Ms Marri appreciated the government’s decision to allow wheat procurement, terming it a longstanding demand of the PPP. She added that approving the support price for wheat was also a PPP demand; however, she noted that fixing the price at Rs4,000 instead of Rs3,500 per 40kg would have been more beneficial for farmers. She further said that reducing the income tax from 45 per cent to 15pc was an important relief measure for the farming community.
Published in Dawn, October 26th, 2025
Babar Azam picked as Fakhar Zaman’s replacement for South Africa T20Is, says Pakistan head coach Mike Hesson
Oppo Find X9 Series Will Have Google-Powered AI Features
Next iPad May Steal iPhone 17 Pro Upgrade
Decart Brings Real-Time AI To Real-Time Creators At TwitchCon
Mohra Episode 43 – Alizeh & Sikandar’s Track Engages Fans
Main Manto Nahi Hoon Episode 27 – Fans Feel For Shamraiz
-
Tech1 week agoDecart Brings Real-Time AI To Real-Time Creators At TwitchCon
-
Entertainment1 week ago
Mohra Episode 43 – Alizeh & Sikandar’s Track Engages Fans
-
Entertainment7 days ago
Main Manto Nahi Hoon Episode 27 – Fans Feel For Shamraiz
-
Entertainment2 weeks ago
PISA 2025 Nominations Out | Reviewit.pk
-
Tech2 weeks ago
Realme 15 Series Debuts in Pakistan with AI Edit Genie, Slim 7000mAh Battery, and Triple 50MP Cameras
-
Entertainment2 weeks ago
Angeline Malik Shares Her Cancer Symptoms
-
Tech1 week ago
Pakistani Social Impact Initiative, ‘Dil Se’ Wins Gold at ‘Dragons of Asia’
-
Business2 weeks ago
Shares at PSX rebound, gain 4,600 points in intraday trade