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Apple to increase prices of apps, in-app purchases in India

Apple will now include 2% equalisation levy in the prices of apps and in-app purchases in the country.

App Store

App Store prices are increasing for consumers in India, Apple revealed on Monday. The Cupertino, California-based company has stated that over the next few days, the prices of apps and in-app purchases will go up in India, Brazil, Colombia, Indonesia, Russia, and South Africa. Additionally, consumers in Albania and Iceland will also see some changes. The price increase is coming from Apple’s end to account for changes in the current exchange rates as well as any new tax requirements. Also Read - Google Pay disappears from Apple App Store, users could face payment issues

As per a post by Apple on its developer site, apps and in-app purchase prices in India will now include a 2 percent equalisation levy that is over and above the existing GST rate of 18 percent. The equalisation levy was introduced in India in 2016 to tax the digital transactions. Basically, it is a tax on foreign e-commerce operators in the country that went into effect in April 2020. Also Read - Apple releases iOS 14.1, iPadOS 14.1 with multiple bug fixes and improvements

While this levy won’t drastically impact the prices of apps, games, and in-app purchases, get ready to see some changes. Also, Apple says auto-renewable subscriptions won’t be impacted by the tax changes. It is also possible that some developers would absorb the price increase by sacrificing part of their profits and continue to offer the existing prices.

It is unclear whether Apple also want to increase the prices of its services, like Apple Music, Apple TV+, Apple Arcade, iCloud, in India.

Meanwhile, Apple’s iPhone 12 and iPhone 12 Pro are currently on pre-orders in the country and the sales will officially kick off on October 30. The iPhone 12 Pro Max and iPhone 12 mini will go on sale in November.

Further, a Bloomberg report has tipped that the iPhone maker will launch its new entry-level AirPods in first half of 2021. The company is also said to be working on newer AirPods Pro but there is no word on when those will reach the stores.

For the latest tech news across the world, latest PC and Mobile games, tips & tricks, top-notch gadget reviews of most exciting releases follow BGR India’s Facebook, Twitter, subscribe our YouTube Channel.
  • Published Date: October 27, 2020 1:37 PM IST



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