Govt hikes import tariff on gold, silver

During the last fortnight of March, the tariff value on imported gold was $375 per 10 grams and on silver at $512 per kg

The government on Wednesday raised import tariff value on gold to $385 per 10g and silver to $543 a kg, taking cues from firm global price trends. During the last fortnight, the tariff value on imported gold was $375 per 10g and on silver at $512 a 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 increase in tariff value on imported gold has been notified by the Central Board of Excise and Customs, according to an official statement.

In Singapore market, gold prices were ruling firm at $1,186 per ounce, while that of silver at $16.72 per ounce. A similar trend prevailed in the domestic market.

In the national capital, gold and silver is available at Rs 26,575 per 10g and Rs 37,200 a kg, respectively. Gold is the second-largest import item for India after petroleum. 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.