Nokia threatens to abandon business in India amid tax battle

BGR.com
Nokia Tax Fine India

Nokia Tax Fine India

In response to tax issues Nokia is currently having in India, the company has threatened to pull its manufacturing business out of the country. Authorities in India recently raided a Nokia factory following allegations that the company had failed to pay as much as $542 million in taxes owed to the Indian government. Nokia refuted the massive tax bill, however, and it didn’t pull any punches in a recent letter to India’s Ministry of Commerce & Industry. “India has suddenly become the least favourable market,” Nokia said in the letter. It continued, “The political risk of operating in India [is] suddenly substantially higher and may inevitably influence future decisions to develop one’s operations in India.” The letter, portions of which were published on Friday by The Indian Express, stated that it might make sense for Nokia to shutter its operations in the country and move its business to China. The Indian Express noted that Nokia’s tax bill now amounts to 20 million rupees, or roughly $316 million.

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