New Delhi: With effect from Monday, the Finance Ministry announced an increase in the import tariff on platinum to a total of 15.4%.

The baseline customs duty rate of 7.5%, subject to IGCR, shall continue to apply to platinum and palladium used in the production of precious metal chemicals, compounds (noble metal compounds and solutions), and catalytic converters. BCD of 2.5% for rhodium will also continue.

It is assumed that the hike in platinum duty is intended to close a loophole that has allowed importers of metal to generate record profits.

According to reports, some importers of bullion are bringing in refined gold masked as platinum alloy. Import taxes on gold are 15%, but those on platinum alloy are 10%. According to analysts, this is an instance of misdeclaration and duty evasion.

Since the notification’s defect did not explicitly describe precious metal alloys, there were rumours that the customs had cleared shipments. Some importers are bringing in refined gold under the pretext of platinum alloy and producing bullion bars. The consignments of platinum alloy included 96% gold.