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India exempts LDCs' exports from duty
INDIAN High Commissioner to Zambia Ashok Kumar says his country will grant duty-free access to exports from Least Developed Countries (LDCs) on 85 per cent of India's total tariff lines.
Speaking during the interactive seminar between the Indian Business Council of Zambia (IBCZ) and the Zambia Revenue Authority (ZRA), Kumar said the Indian government would unilaterally provide preferential market access for exports from 50 LDCs, 34 of which are in Africa.
“This scheme grants duty-free access on exports from the LDCs on 85 per cent of India's total tariff lines. On another 9 per cent of India'stariff lines, India would grant preferential duty access as per the prescribed margin of preference,” Kumar said.
Kumar advised investors to take advantage of the scheme to build trade between Zambia and India.
He said the duty-free access and the tariff lines would provide duty-free and preferential market access on 94 per cent of India's total tariff lines.
Kumar also said he expected Indian investment in Zambia to increase in the next three years.
He said Konkola Copper Mine (KCM) of Vedanta Resources Plc had injected US$1.5 billion in the mine up to 2009.
He said he expected KCM's investment to reach US$3 billion in the next three years.
Kumar said more Indian investment in different sectors was expected as the IBCZ continued to play an important role in Zambia's economy.
“Taurian Manganese Limited, one of the group of companies of Dharni Sampda Private Limited in India invested US$17 million in 2010 and plans to invest another US$200 million for setting up a ferro alloy plant in Zambia,” he said.
And ZRA Commissioner General Wisdom Nhekairo said the ZRA needed partnerships that would enable the country collect correct amounts of tax.
Nhekairo said ZRA was facing challenges at the clearing points due to poor infrastructure.
He said this made it difficult for the authority to collect the accurate amounts of tax.
“By the end of this year we will have scanners at almost all clearingpoints that will help capture everything entering or leaving the country. This will eventually reduce tax evasion and smuggling at borders,” said Nhekairo.
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