Government cuts import tariff value on gold & silver

New Delhi: Government on Friday slashed import tariff value on gold and silver to USD 354 per 10 grams and USD 470 per kg respectively, tracking weakness in global markets.

For the last fortnight, the tariff value on imported gold was fixed at USD 373 per 10 grams and on silver it was  USD 517 per kg.

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

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, spot gold prices were ruling nearly five-year low at USD 1,083.85 per ounce and silver rates were also down at USD 14.36 per ounce today.

In the national capital, gold prices slipped below Rs 26,000 per 10 gram today taking global cues. Silver was costing Rs 34,400 per kg.

The country's gold imports reduced to almost half in September this year to USD 2 billion, as against USD 3.783 billion in the year-ago period, 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 the exports.