Apple to charge more for apps and in-app purchases

The tech giant’s App Store took the decision for India and five other countries owing to change in forex rate and taxes.

Apple has announced that it will increase the prices of apps and in-app purchases on App Store in India and five other countries including Brazil, Colombia, Indonesia, Russia and South Africa. The decision came after a change in forex rates and taxes.

“When taxes or foreign exchange rates change, we sometimes need to update prices on the App Store,” said Apple. This price rise would exclude auto-renewable subscriptions.

Apple developers have also released the updated price tier chart for users. This chart provides information about the increase in pricing for their particular apps. In India, according to the price chart, apps and in-app purchases in the App Store will now be charged at a minimum of Rs 89, which earlier was Rs 80.

The increase in app store prices in India will reflect the 2% new equalization levy, in addition to the existing goods and services tax of 18%. The equalization levy was included in the Finance Act, 2016 which is in effect since April 1, 2020. The announcement also mentioned that developers based outside Indonesia will have to bear a 10% new value-added tax as well.

Once the changes are implemented, the proceeds will be adjusted accordingly and calculated based on the tax-exclusive price. Users can avail the new pricing through the Pricing and Availability section of My Apps once it is updated in the Apple Developer portal. Existing subscribers can choose to preserve their offered subscription.

“One can change the price of their app and in-app purchases (including auto-renewable subscriptions) at any time in App Store Connect,” added Apple.

The firm didn’t mention any increase in prices for its services like iCloud, Apple TV+ and Apple Music.

“Prices of apps and in-app purchases (excluding auto-renewable subscriptions) will also be adjusted in Iceland and Albania to align with pricing used in other markets selling in US dollars with value-added tax,” read the tech giant’s announcement.


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