The Indian government is considering extending tax breaks to foreign companies that provide machinery to local contract manufacturers in India, Reuters reported Monday, citing a draft of the proposed tax amendments.
The government has reportedly extended tax breaks by 10 years until March 31, 2041. At present, the tax exemption for foreign companies is valid until 2031. The extended tax exemption will apply to manufacturers of mobile phones, tablets, laptops, hearing and wearable electronic devices, the report said.
The draft bill, if passed by the lower and upper houses of parliament, is likely to be a win for companies like consumer electronics giant Apple, which had lobbied for the changes.
India's finance ministry did not immediately respond to' request for a comment.
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