Govt hikes import tariff on gold, silver

The government today hiked the tariff value on import of gold to USD 403 per 10 gram and silver to USD 510 per kg.

For the first fortnight of this month, the import tariff value on gold was fixed at USD 363 per 10 gram and on silver was USD 443 per kg.

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

The change in tariff value of these precious metals has been notified by the Central Board of Excise and Customs.

The import tariff value of gold and silver has been changed taking into account the price trend in the global market and rupee situation.

Globally, gold sank 1.9 per cent to USD 1,214.68 an ounce and silver lost 2.7 per cent to USD 15.31 an ounce in Singapore today.

While in the domestic market, gold prices fell for a second straight day and lost Rs 100 to Rs 28,950 per ten grams.

Silver followed suit and plunged by Rs 775 to Rs 37,025 per kg due to reduced offtake by industrial units and coin makers.

Driven by dip in global prices, India's gold imports increased by 85.16 per cent to USD 2.91 billion last month.

The prices have been declining at global as well as domestic markets. However, the higher import impacts the country's current account deficit (CAD).

India is the largest importer of gold in the world, the demand of which mostly comes from the jewelery industry.

During the April-January period of the current fiscal, gold imports have increased to USD 29.36 billion as against USD 27.42 billion in the first 10 months of 2014-15.