PHDCCI Advocates for Permanent Zero Duty on Gold Ore Concentrate Imports to Strengthen Local Industry

Synopsis

The PHD Chamber of Commerce and Industry has requested the Finance Minister to implement a permanent zero-rated import duty on gold ore concentrate, which would enhance the local processing industry and create jobs. This move aligns with the government's Make in India initiative.

Key Takeaways

PHDCCI seeks zero import duty on gold ore concentrate.
Current duties create a competitive disadvantage.
Temporary exemptions add uncertainty to the industry.
Aligning duties could foster growth and job creation.
Long-term policies are essential for stability.

New Delhi, March 19 (NationPress) The PHD Chamber of Commerce and Industry (PHDCCI) has formally requested Finance Minister Nirmala Sitharaman to establish a permanent zero-rated import duty on gold ore concentrate, similar to the existing arrangement for copper ore concentrate. This initiative aims to enhance India's gold ore concentrate processing sector and generate additional employment opportunities within the country.

Since its inception in 2021, India's gold ore concentrate processing industry holds the promise of significantly bolstering the national economy by curtailing imports of gold bullion, creating high-value jobs, and promoting self-sufficiency in line with the Make in India initiative, as indicated in a letter addressed to the Finance Minister.

The letter highlights a critical issue regarding the disparity in import duty rates between gold ore concentrate and copper ore concentrate (HSN-26030000). This discrepancy is adversely affecting the growth, competitiveness, and sustainability of this emerging industry.

Currently, the 2.5 per cent import duty on gold ore concentrate, compared to zero duty on copper ore concentrate, creates a considerable financial burden for the gold ore concentrate processing sector.

Furthermore, the temporary exemption from import duty for gold ore concentrate is set to expire on March 31, 2026, adding further unpredictability to the industry's future, as mentioned in the letter.

The PHDCCI has urged Finance Minister Sitharaman to eliminate the conditionality and expiration date from this exemption to foster long-term policy stability.

Adding to the industry's challenges, the reduction of the import duty on finished gold from 15 per cent to 6 per cent in the Union Budget 2024-25 makes direct imports of finished gold more attractive than domestic refining, thereby obstructing the development of India’s refining capabilities.

The business chamber argues that harmonizing the duty structure between gold ore processors and finished gold importers would create a fair competitive landscape, ensuring an equitable playing field.

In the letter, the Finance Minister is urged to address this issue to establish a fair, stable, and growth-oriented policy framework for the gold ore concentrate processing industry.

PHDCCI asserts that fostering gold refining in India will minimize dependence on imported finished gold, and a stable zero-duty policy will attract increased investment in gold refining infrastructure. The chamber emphasizes that expanding gold refining will create job opportunities across the sector.