Government Hikes Tariff Value on Imported Gold

New Delhi: The government on Monday raised the import tariff value on gold to $363 per 10 grams and silver to $499 per kg, taking strong cues from the global market.

For the first fortnight of this month, the import tariff value of gold and silver stood at $354 per 10 grams and $498 per kg, respectively.

The import tariff value is the base price at which the customs duty is determined to prevent under-invoicing. The tariff value is revised on a fortnightly basis.

The change in tariff value of gold and silver has been notified by the Central Board of Excise and Customs (CBEC), said an official statement issued by the Finance Ministry.

The government raised the tariff value of imported gold and silver marginally taking into account the rise in global prices.

At Singapore market, prices of gold today rose slightly to $116.70 per ounce, while that of silver to $15.34 per ounce. In the national capital too, gold was ruling at over Rs 26,200 per 10 grams and silver at Rs 36,130 per kg.

After declining in June, the country's gold imports jumped 62.2 per cent to $2.96 billion in July, as against $1.82 billion in the year-ago period, government data showed.

Gold is the second largest import item for India after petroleum. Higher gold import bill adversely affects the country's current account deficit, which occurs when value of import of goods and services is more than exports.