Government reduces tariff value on imported gold

The government on Wednesday slashed the import tariff value of gold to $417 per 10 grams, while that of silver was kept unchanged at $738 per kg, in line with global trend.

The import tariff value is the base price at which the customs duty is determined to prevent under-invoicing. The tariff value on imported gold stood at $440 per 10 grams on Tuesday.

The notification in this regard has been issued by the Central Board of Excise and Customs (CBEC), an official statement said.

However, the tariff value on imported silver, brass scrap, vegetable oils and areca nut has been kept unchanged.

The import tariff value on gold has been changed taking cues from the global market.

In New York, the yellow metal fell to Rs 1266.20 per ounce on Tuesday night from the level of 1322.2 per ounce earlier this month. Similarly, silver prices have also declined to $20.70 per ounce.

In the national capital, gold prices declined by Rs 315 to Rs 31,500 per 10 grams on Wednesday, while silver lost Rs 850 to Rs 48,000 per kg following weak global trend.

Despite the fall in prices, gold in the domestic market is being sold at a high premium due to supply crunch caused by government measures to restrict the import of precious metal in an effort to cut current account deficit.

India, the world's largest consumer of gold, imported 393.68 tonnes of the yellow metal during the April-September period of this year, as per official data.

The government has taken several steps to reduce gold imports, including hike in custom duties.