IANS | 04 Oct, 2022
Import duty on platinum has been increased to a total of 15.4 per cent
with effect from Monday through a notification by the Finance Ministry.
Platinum and palladium for use in 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 IGCR. Rhodium will also continue with BCD of
2.5 per cent.
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.
As per reports some bullion importers are importing refined gold disguised as platinum alloy.
Gold
attracts 15 per cent import duty, as opposed to platinum alloy that
invites a duty of 10.75 per cent which observers say is a case of
misdeclaration and duty violation.
There were reports that the
customs had cleared consignments since the loophole in the notification
have not clearly defined alloys of precious metals. The consignments of
platinum alloy contained 96 per cent gold and some importers are
importing refined gold under the guise of platinum alloy and making
bullion bars.
