Government Raises Import Tariff Value on Gold

New Delhi: The government on Thursday raised import tariff value of gold to $388 per 10 grams, taking cues from global price trends.

However, the import tariff on silver has been cut to $524 per kg.

During the last fortnight of March, the tariff value on imported gold was $385 per 10 grams and on silver at $543 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 increase in tariff value on imported gold has been notified by the Central Board of Excise and Customs, according to an official statement.

Gold in Singapore, which normally sets price trend on the domestic front, rose 0.4 per cent to $1,207.70 an ounce and silver 0.3 per cent to $16.40 an ounce.

In the national capital, gold prices rose by Rs 210 at Rs 27,080 per 10 grams and silver also gained Rs 200 at Rs 37,000 per kg on increased offtake by industrial units and coin makers.

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.