The Indian government has ordered Samsung Electronics to pay $601 million (₹5,100 crore) in taxes. Authorities claim the company avoided import duties on critical telecom components. This marks one of the largest tax demands India has ever imposed on a foreign firm, according to Reuters.
Penalty Covers Over Half of Samsung’s Profits
In 2024, Samsung earned a net profit of $955 million in India. However, the tax demand now accounts for more than 60% of that amount. This penalty could significantly impact the company’s financial performance in the country.
Samsung Yet to Respond
So far, Samsung has not released an official statement. The company might choose to challenge the demand in Indian courts. Meanwhile, its role in India’s smartphone market remains crucial despite competition from Chinese brands.
Samsung Holds Strong in Global Market
Although Apple leads globally with nearly 25% market share, Samsung follows closely with around 16%. In India, it continues to be a key competitor in the smartphone industry.
Samsung’s Stock Rises Despite Controversy
Interestingly, Samsung’s stock is gaining momentum. Listed on the Seoul Stock Exchange, its shares opened at KRW 59,800 and quickly surged. By the latest update, the stock had climbed 2.17% to KRW 61,100 per share. This rise suggests strong investor confidence despite the tax dispute.
