Apple’s India move will set example for investors: Nirmala Sitharaman

NEW DELHI: Finance minister Nirmala Sitharaman said on Sunday that any move by US electronic giant Apple and its ecosystem to move some of their manufacturing to India would be a huge signal for other foreign companies to relocate their supply chains here from China after the attractive tax rates that New Delhi offers now.
Speaking at her official residence, Sitharaman said the move was a “calculated risk” and will help change the mood in the country.She said no country in South East Asia is offering a 15% rate on setting up new manufacturing units and added that India’s comparative advantages of an English speaking population, a transparent government and a simpler taxation structure would work for companies looking to relocate their supply chains from China.
“No country is offering 15%, rate in South East Asia” said Sitharaman. The finance minister said that investors had pointed to the high corporate tax rates as a major obstacle but, after Friday’s announcement, the view is that the government has ticked all the boxes and there were no surprises in the fine print.
The government on Friday announced Rs 1.45 lakh crore tax bonanza that will see the effective corporate tax rate come down to 25.17% from 29.5% for companies that do not seek exemptions and 15% for new manufacturing units and startups.
FM said it would be difficult for any future government to raise corporate tax rates upwards. She said any future government planning to raise these rates will have to go to Parliament and explain the rationale for revising them.