India has raised the total import duty on platinum to 15.4 per cent from 10.75 per cent, the government said in a notification on Monday, seeking to bring parity in the import duty structure between gold and platinum.
The government, in July, had increased the import duty on gold to 15 per cent but kept the tax on platinum imports unchanged at 10.75 per cent.
However, the usage of platinum and palladium in the manufacture of precious 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 a concessional rate of duty (IGCR). Rhodium will also continue with basic custom duty (BCD) of 2.5 per cent.
On July 1 this year, a hike was announced in the customs duty on gold from 7.5 per cent to 12.5 per cent. Gold also attracts a 2.5 per cent agriculture infrastructure development cess (AIDC), taking the total import duty to 15 per cent.
However, at this time, the import duty was kept unchanged at 10.75 per cent.
It is presumed that the increase in duty on platinum is to plug a loophole that is helping bullion importers to make record profits.
There was a difference in import duty between gold and platinum in July. It is believed that some bullion importers are importing refined gold disguised as a platinum alloy.