Apple Adjusts App Store Pricing in India; Apps Get Pricier Due to Addition of 2% Equalisation Levy

Apple today informed its developers about upcoming tax and price changes to the App Store Pricing for apps and in-app purchases in a few different countries.

When taxes or foreign exchange rates change, we sometimes need to update prices on the App Store. In the next few days, prices of apps and in-app purchases (excluding auto-renewable subscriptions) on the App Store will increase in Brazil, Colombia, India, Indonesia, Russia, and South Africa. These increases also reflect the following tax changes:

The company has adjusted the pricing of apps on the iOS and Mac App Stores for India by adding a 2% Equalization Levy that was implemented from 1st April, 2020 . This is in addition to the 18% GST already implemented. The last major change to app pricing in India came in January 2018, where the prices of apps were reduced by ₹1.

After the addition of the 2% Equalization Levy, the App Store pricing for India has resulted in pricing of apps going up by at least ₹10.

App Store Pricing Change in India in October 2020
App Store India Pricing October 2020

While this pricing change for apps is not applicable to existing auto-renewing subscriptions, Apple does indicate that developers can increase the prices for new subscribers.

Remember, just because the prices have gone up and you’re paying more for apps, it does not mean that the app developer ends up getting more of your money. As Apple says in the announcement.

Once these changes go into effect, the Pricing and Availability section of My Apps will be updated, and your proceeds will be adjusted accordingly and calculated based on the tax-exclusive price.

Apple (Emphasis mine)

Apple Decreases Pricing of Apps on the Indian App Store As it Adjusts Pricing for Several Countries

App Store India Pricing January 2018

Apple has adjusted the App Store pricing for several countries this week to account for foreign exchange rate fluctuations and tax changes. App Store developers were notified of this change via an email earlier this week, as reported by 9to5Mac. Apple periodically adjusts the pricing on the App Store to account for these changes and the last major change for pricing of apps for Apple customers in India happened in January 2017 when Apple increased the pricing of apps on the App Store for India by around 25% to 32%.

App Store Pricing Adjustment for India

According to the email that Apple sent out to developers, the pricing for apps in India will decrease.

India: Prices will decrease for apps and in-app purchases (including auto-renewable subscriptions)

As a consumer, it’s obvious to get excited upon reading that, but wait till you hear the new pricing that is now live on the App Store. The pricing of apps on App Store India has been reduced by Rs. 1. That’s right, apps will cost less by a whole Rupee going forward.

Here are the top pricing tiers now active on the App Store:

App Store India Pricing January 2018

App Store India Pricing January 2018

I’m not really sure why Apple decided to make this minor change to the pricing. I’m hoping that this ₹1 discount is just cosmetic — such that the pricing appears in line with the standard xx.99 way and that the change announced in the email is rolling out in the coming days with a notable change in the pricing.

What do you think about this change? Let me know your thoughts on Twitter @preshit or @nuclearbits.

[h/t @macpeercom]