PHDCCI seeks permanent zero import duty on gold ore concentrate

Industry chamber PHDCCI has urged Finance and Corporate Affairs Minister Nirmala Sitharaman to grant a permanent zero-rated import duty on gold ore concentrate, bringing it in line with copper ore concentrate. The current 2.5 per cent import duty on gold ore concentrate, compared to zero duty on copper ore concentrate, places the gold refining industry at a significant cost disadvantage, PHDCCI CEO & Secretary General Ranjeet Mehta said in a letter to Sitharaman. “Copper ore concentrate enjoys zero import duty and produces gold as a by-product, whereas gold ore concentrate faces a 2.5 per cent duty unless specific conditions are met. This discourages dedicated gold refining,” Mehta stated.

The chamber emphasised the need for a stable and growth-friendly policy framework to support domestic gold refining. It also pointed out that the recent reduction in import duty on finished gold — from 15 per cent to 6 per cent in the Union Budget 2024-25—makes direct imports more attractive, undermining domestic refining infrastructure. Additionally, PHDCCI raised concerns over the temporary nature of the current exemption on gold ore concentrate import duty, which expires on March 31, 2026. The chamber has called for removing this expiry date and conditionality to provide long-term stability for the industry.