The government on Tuesday slashed the import tariff value on gold and silver to USD 359 per 10 grams and USD 470 per kg respectively, following weak global cues.
In the first fortnight of this month, the tariff value on imported gold was USD 369 per 10 grams and on silver it was USD 471 per kg.
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.
ADVERTISEMENT
The change in tariff value of these precious metals has been notified by the Central Board of Excise and Customs, said an official statement issued by the Finance Ministry.
At London market, gold prices on Tuesday fell marginally to USD 1106.63 per ounce ahead of the meeting of US Federal Reserve on interest rates. Silver prices also declined by 0.7 per cent to USD 14.33 per ounce over the last year.
In the national capital too, gold prices dropped marginally to Rs. 26,350 per 10 grams and silver to Rs. 34,500 per kg taking weak dues from the global market.
ADVERTISEMENT
The country’s gold imports increased by 140 per cent to USD 4.95 billion in August this year, from USD 2.06 billion in the same month last year, as per the government data.
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.