Oppo Mobile, Vivo India and Xiaomi Technology have jointly avoided Rs 9 billion by avoiding import duties and taxes on goods and services, said IT Minister Rajeev Chandrasekhar. So far, the government has secured 1.63 billion from these companies.
Chinese smartphone manufacturers Oppo Mobile, India's Vivo and Xiaomi Technology have been accused of evading 9 billion euros worth of Indian taxes, according to information presented to Parliament. Data provided by State Minister for Electronics and Information Technology Rajeev Chandrasekhar shows that this tax evasion is related to customs and GST and was detected between 2018-19 and 2022-23.
During this period, the government earned Rs 1,629.87 crore from the companies. The exact figure for tax fraud is:
- 5,086 crore was waived by Oppo Mobile India Pvt Ltd, including Rs 4,403 crore for customs duties and Rs 683 crore for goods and services tax.
- Vivo waived Rs 2,923.25 crore, including Rs 2,875 crore for customs duties and Rs 48.25 crore for goods and services tax.
- Fulfillment by Xiaomi Technology India Pvt Ltd was Rs 851.14 crore, including Rs 682.51 crore customs clearance and Rs 168.63 crore GST.
In 2019-2020, the case of Oppo Mobile India Pvt Ltd exposed customs evasion of Rs 4,389 crore, of which Rs 450 crore was recovered. During the same period, Vivo India Mobile Pvt Ltd avoided Rs 2,217 crore in customs clearance and collected Rs 72 crore in 2020-21. Xiaomi Technology India Pvt Ltd has avoided customs duty worth Rs 653.02 crore, of which Rs 46 lakh was refunded. In 2022-23, Vivo Mobile India Pvt Ltd was found to have avoided Rs 658 crore in GST and Lenovo Rs 42.36 crore.
According to official data, the government managed to recover Rs 1214.83 crore from Oppo, Rs 168.25 crore from Vivo and Rs 92.8 crore from Xiaomi.
The minister was responding to questions about the number of Chinese mobile phone companies involved in tax evasion and illegal money transfers to India.
Chandrasekhar said that in 2021-2022, Chinese revenue for Indian mobile companies is expected to reach Rs 1.5 trillion, and will create more than 75,000 direct jobs in manufacturing operations, as well as around 80,000 sales and operations employees.
Moreover, the Chinese company set up its own manufacturing unit first, he said.
“However, they are working closely with contract manufacturers such as Bharat FIH Limited and DBG Technology (India) Private Limited, who have also established EMS manufacturing operations in India. The distribution of mobile phones is mainly done by Indian companies.
"However, some Chinese companies such as Oppo and Vivo have many Chinese distributors," said Chandrasekhar.
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