Oppo, Vivo, Xiaomi Found Stealing Tax Worth Rs 9000 Crore, Government Recovered Rs 1630 Crore

Chinese smartphone companies Oppo Mobile, Vivo India and Xiaomi Technology have committed tax evasion of around Rs 9,000 crore. This information has been given to the Parliament by the Central Government. This includes evasion of Customs Duty and Goods and Services Tax (GST). These companies have evaded this tax in the last three financial years.

Minister of State for Electronics and IT Rajeev Chandrasekhar in Rajya Sabha told That these companies have evaded tax of about Rs 9,000 crore and have recovered Rs 1,629.87 crore from the government. Oppo has committed tax evasion of Rs 5,086 crore. This includes customs duty of Rs 4,403 crore and GST of Rs 683 crore. Vivo has evaded tax of Rs 2,923.25 crore. This includes customs duty of Rs 2,875 crore and GST of Rs 48.25 crore. Apart from this, tax evasion of Rs 851.14 crore has been detected in the case of Chinese smartphone maker Xiaomi. This includes customs duty of Rs 682.51 crore and GST of Rs 168.63 crore.

Difficulties are increasing for Xiaomi’s business in India. The company is facing challenges like loss of market share and regulatory strictures. Xiaomi has decided to restructure its units in the country. Because of this, workers are being laid off from the company. According to a media report, Xiaomi had around 1,500 workers in the country earlier this year. The company has recently laid off around 30 workers. It may retrench again soon. The market share of the company has decreased in the last few months. Because of this, it is taking measures like better utilization of its resources and reducing expenses. Companies like Samsung have made a dent in its market share. The company is also suffering due to low presence in the category of low-priced smartphones.

The government has made new rules for Chinese mobile companies. The government has asked these companies to involve Indian equity partners in their business in the country. Apart from this, these companies will have to appoint Indian executives in senior positions like Chief Executive Officer, Chief Financial Officer and Chief Technical Officer.