Govt hikes import tariff value on gold

The government today hiked import tariff value on gold to USD 401 per 10 grams but kept the tariff unchanged for silver at USD 575 per kg, following global price trends.
For the first fortnight of this month, the tariff value on imported gold was fixed at USD 396 per 10 grams.
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, an official statement said.

Gold in New York, which normally sets price trend on the domestic front, increased by 0.72 per cent to trade at five-week high of USD 1,241.10 an ounce and silver by 0.32 per cent to USD 17.45 an ounce in yesterday's trade.
Gold is the second largest import item for India after petroleum. Gold import increased for the second straight month to 95 tonnes in September ahead of festival season.
The government has imposed several restriction to curb imports to contain current account deficit (CAD). Import duty on gold was increased thrice to a record 10 per cent last year and made it mandatory to export 20 per cent of the imported gold.