Apple has decided to increase the prices of apps and in-app purchases on the App Store in select countries. India in particular might be facing the highest rise in app prices. The price hike, based on changing exchange rates and taxation policies, will affect in-app purchases, but not subscription charges.
The changes in India can be put down partially to new local tax laws, and the rest to rupee's fall against the dollar since the prices were last changed. While there's no official announcement yet of the new pricing, BBC reports that Apple will now charge Rs. 80 for every $0.99 app purchase, instead of the earlier charge of Rs. 60 - this is a 33 percent increase in the price of App Store purchases, the highest among all impacted countries.
UK sees a 25 percent rise and will now charge GBP 0.99 for every $0.99 app purchase. Earlier the conversion rate was at GBP 0.79. Even Turkey faces an increase, and the App Store will now charge TRY 3.49 per dollar, instead of the earlier TRY 2.49, amounting to a 30 percent increase.
Last month, Apple had announced that effective December 1, the company would be charging a service tax rate of 14 percent along with additional levies of 0.5 percent for Krishi Kalyan Cess (KKC) and Swachh Bharat Cess (SBC) for apps and in-app purchases bought by Indian consumers, in line with the aforementioned new tax laws.
The company said, "we will be administering the collection of the taxes from customers and the remittance of taxes to the appropriate tax authority." These additional charges, apart from the drop in the value Indian rupee, are thought to be the reason behind the 33 percent hike in App Store prices in India. Apple has also hiked prices of apps in Romania and Russia in order to take account changes in taxation policies.
9to5Mac was the first to report the price hikes, which aren't live yet but are likely to reflect on the App Store and Mac App Store in the next few days. The price change is also expected to reflect in the iTunes Store. This means books, TV shows, movies and all other digital content may soon get more expensive in India.
The new prices could roll out in all regions over the next seven days. Before that happens, go ahead and purchase all your favourite apps right away!