India Restricts Import Of Palladium, Rhodium, Iridium Alloys To Check Gold Duty Evasion
Gold attracts a high import duty, with bars and coins taxed at about 6.6%, dore bars at 6% and jewellery at 22%.
India has restricted the imports of palladium, rhodium and iridium alloy with over 1% gold by weight, according to a government notification, in a bid to check duty evasion in the import of gold.
The move is meant to prevent import of gold at a lower duty in the guise of alloys, according to government officials who spoke to NDTV Profit on the condition of anonymity.
While palladium, rhodium and iridium are platinum group metals, they're not classified as rare earth metals.
Gold attracts a high import duty, with bars and coins taxed at about 6.6%, dore bars at 6% and jewellery at 22%. On the other hand, palladium, rhodium and iridium are free to import, leading to some importers allegedly bringing in gold disguised as low-duty alloys or mixed metals, claiming it's not pure gold.
These "alloys" are then chemically processed to extract pure gold, allowing traders to pay lower duties, while bringing high-value pure gold into the market.
