Import duties on platinum increased to 15.4%


New Delhi: The central government on Monday issued a notice raising the total import duty on platinum to 15.4% from 10.75%, aiming to equalize the import duty rate between gold and platinum.

It is noteworthy here that in the last month of July, the government raised import duties 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 chemicals, expensive metallic compounds (noble metal compounds and solutions) and catalytic converters will continue to be subject to a base tariff of 7.5 percent taking into account the import of goods at the tariff rate (IGCR). Rhodium will also continue to impose a base tariff (BCD) of 2.5 percent.

A sharp rise in tariffs on gold was announced from 7.5 per cent to 12.5 per cent on July 1 of this year. Gold also brings in 2.5 percent of the Agricultural Infrastructure Development Tax (AIDC), which brings the total import duty up to 15 percent. However, the government did not change the import duties and kept it at 10.75 per cent.

The move behind the increase in omport duties on platinum is supposed to fill a loophole that helps bullion importers make record profits.

There was a difference in import duties between gold and platinum in July. Some bullion importers are believed to be importing refined gold disguised as platinum bullion.

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