Amazon has decided to pay India’s national tariff books, e-books and audiobooks at a higher rate, following a dispute between the two countries.
The company had earlier set a policy of “lower pricing for Indian products”, a move that had sparked outrage from both sides.
But it has since changed its mind, saying the decision was “in the interest of all stakeholders”.
The decision will have ramifications for Amazon’s business in India, with books and e-book sales declining in both countries.
The company said that as of March 2016, Indian booksellers would pay 5.8% of their sales to Amazon in tariffs, compared to 2.6% in the US and 3.1% in Germany.
However, India is already paying a similar tariff rate to the US, and has recently agreed to pay its books at 3.5% on all Amazon platforms.
According to the latest data, India’s annual books sales are estimated at $1.6 billion, while the US book sales are about $1 billion.
The decision has been taken to “address a growing concern in the industry that certain Amazon services, e.g. Amazon Prime, are not subject to Indian tariffs”, said Rajiv Kumar, Amazon’s head of India.
Amazon has set an “Amazon India” policy, and India will pay it.
The decision will come into effect on April 1.