India increases import tax on platinum to 15.4% from 10.75%

4 Oct 2022 , 09:05 AM

By way of a notification, the Finance Ministry raised the import tax on platinum to a total of 15.4% as of Monday. The baseline customs tax 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 remain.

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 a 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 rumors 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.

The import charge on gold is 15%, whereas the duty on platinum alloy is 10%, which analysts claim to be an instance of misdeclaration and duty evasion.

Since precious metal alloys were not specifically stated in the notification, there were claims that the customs had approved consignments. The platinum alloy consignments had 96 percent gold in them, and some importers are bringing in refined gold disguised as a platinum alloy to make bullion bars.

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