New Delhi: The Central government on Monday has issued a notification to raise total import duty on platinum to 15.4% from 10.75%, aiming to bring equality in import duty rate between gold and platinum.
It is pertinent to mention here that in last month of July, the government has raised the import duty on gold to 15 per cent but kept the tax on platinum imports unchanged at 10.75 per cent.
However, the use of palladium and platinum in the production of costly metal chemicals, compounds (noble metal compounds and solutions) and catalytic converters will continue at basic customs duty of 7.5 per cent subject to import of goods at give and take rate of duty (IGCR). Rhodium will also continue with basic custom duty (BCD) of 2.5 per cent.
A steep rise was announced in the custom duty on gold from 7.5 per cent to 12.5 per cent in July 1, this year. Gold also brings a 2.5 per cent agriculture infrastructure development cess (AIDC), taking the total import duty to 15 per cent. However, the government did not change the import duty and kept at 10.75 per cent.
It is assumed that the move behind the hike in the omport duty on platium is to plug a loophole which is helping bullion importers to make record profits.
There was a difference of import duty between gold and platinum in July. It is believed that some bullion importers are importing refined gold disguised as platinum alloy.
