Centre raises import duty on platinum to 15.4%

India has raised total import duty on platinum to 15.4% from 10.75%, the government said in a notification on Monday, seeking to bring parity in import duty structure between gold and platinum.

The government in July had increased the import duty on gold to 15% but kept the tax on platinum imports unchanged at 10.75%.

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% subject to import of goods at concessional rate of duty (IGCR). Rhodium will also continue with basic custom duty (BCD) of 2.5%.

On July 1 this year, a hike was announced in the custom duty on gold from 7.5% to 12.5%. Gold also attracts a 2.5% agriculture infrastructure development cess (AIDC), taking the total import duty to 15%. However, at this time, the import duty was kept unchanged at 10.75%.

It is being presumed that the increase in duty on platinum 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.