Govt cuts gold, silver import tariff value

Import prices of gold has been reduced to $382 per gram, silver $516 per kg

The government on Wednesday reduced marginally the import tariff value of gold to $382 per 10 grams and of silver to $516 per kg considering weak global price trend in the wake of Greek crisis.

For last fortnight, the tariff value of gold was fixed at $385 per 10 grams and silver at $519 per kg.

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

The tariff value of these two items has been reduced due to flat to weak price trend in the global market following the Greece debt crisis.

At London market, which normally sets price trend on the domestic front, gold and silver prices were ruling down at $1,172 an ounce and $15.57 an ounce, respectively, on Wednesday.

In the national capital, too, gold prices declined by Rs 140 to Rs 25,710 per 10 grams and silver rates fell slightly to Rs 36,050 a kg.

Gold imports in India, the world’s biggest consumer, grew 10.47 per cent to $2.42 billion in May on declining prices and easing of restrictions by the Reserve Bank of India, against $2.19 billion in the same month of 2014.

Since higher gold import bill adversely affects the country’s current account deficit, the government has been repeatedly asking people to desist from buying gold and instead invest in other saving instruments.