Hindustan Zinc has contributed ₹77,803 Crores to the exchequer in the last 5 years, while in FY 2023-24, the total contribution to the exchequer was ₹13,195 Crores.
On July 15, 2024, Hindustan Zinc Limited, India’s largest and the world’s second-largest integrated zinc producer, released its 7th Tax Transparency Report. The report highlights the company’s significant contribution to the national exchequer and unwavering commitment to nation-building.
Key Takeaways
- Hindustan Zinc contributed a remarkable ₹13,195 crore to the exchequer in FY 2023-24, representing nearly 46% of its total revenues. This brings the company’s cumulative contribution over the past five years to a staggering ₹77,803 crore.
- Despite market fluctuations, Hindustan Zinc remains committed to the goal of Atmanirbhar Bharat (self-reliant India).
- The company takes pride in its voluntary tax disclosures, recognising its role in India’s development.
Production Milestones
- FY 2023-24 saw record-breaking production with:
- Highest ever mined metal production at 1,079 kt
- Highest-ever refined metal production exceeding one million tonnes (1,033 kt)
- Highest-ever saleable silver production at 746 mt
Supporting Rajasthan’s Development
- Over five years, Hindustan Zinc has consistently contributed an average of ₹3,250 crore annually to the State of Rajasthan through royalties, District Mineral Foundation (DMF) contributions, and other levies.
Comprehensive Tax Breakdown
The report details Hindustan Zinc’s tax contributions over the past five years, including:
- Government Royalties ( ₹16,350 crore): This includes contributions to the Rajasthan government, DMF, and the National Mineral Exploration Trust.
- Taxes on Income (₹10,100 crore): Corporate income tax paid over the past five years.
- Corporate Dividend to Government of India (₹18,008 crore)
- Indirect Taxes (₹26,384 crore): Central and state government taxes like CGST, SGST, and IGST are collected on sales.
Transparency and Integrity
- An independent assurance report by a Big 4 audit firm verifies Hindustan Zinc’s contribution to the exchequer.
- The report emphasises adherence to tax regulations and upholding the spirit of the law.
ESG Commitment
Hindustan Zinc views tax transparency as a key element of its ESG (environmental, social, and governance) agenda. Voluntary tax disclosures demonstrate the company’s commitment to economic development, fostering stakeholder understanding, and building trust.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
