Traders' Body Urges Government To Cut Gold Ore Import Duty To Zero
PHD Chamber of Commerce also requested Finance Minister Nirmala Sitharaman to remove customs duty on import and the expiry date from the exemption.
Industry association PHD Chamber of Commerce on Tuesday wrote to Finance Minister Nirmala Sitharaman, requesting the ministry's intervention in cutting the import duty on gold ore concentrate to zero to ensure the industry's sustainability.
In a letter, PHDCCI Secretary Ranjeet Mehta said that the disparity in import duty structures between gold and copper ore concentrates is "severely impacting the growth, competitiveness, and sustainability of this nascent industry."
While copper concentrates don't attract a customs duty on import, gold ore concentrates attract a 2.5% duty. This poses a "significant cost disadvantage for the gold ore concentrate processing industry. Additionally, the exemption on the import duty for gold ore concentrate is temporary, expiring on March 31, 2026, adding further uncertainty for the industry’s future," Mehta said.
He added that the issue is "compounded" by the reduction in the import duty on finished gold from 15% to 6% in the Union Budget 2024-25, making direct imports of finished gold more attractive than domestic refining, hindering the growth of India’s refining infrastructure.
The body requested removing customs duty on import and the expiry date from the exemption, as well as aligning the duty structure between gold ore processors and finished gold importers.
