MUMBAI: The Indian Government today announced hike in import tariff value for gold and silver. The import tariff value of gold was increased by nearly 2.6%, in accordance with prices of precious metals in the international market. Meantime, tariff value on imported silver has been increased marginally by 1.1% for the second fortnight period of the current month.
The Central Board of Excise and Customs (CBEC) issued notification in this regard elevating the gold import tariff value to $354 per 10 grams. The import tariffs are being hiked from the existing $345 per 10 grams. Meanwhile the import tariff value of Silver has been increased slightly from $452 per kilogram to $457 per kilogram.
The government move to increase the import tariff value is in primarily on account of rebounding gold prices in the global and domestic markets. The strong concerns over the fate of global economy which had driven gold prices during the beginning of the year is likely to lend support to gold prices going forward.
Meanwhile, gold prices steadied on London spot market session today, on the back of rising safe-haven demand amidst weaker stock and oil prices. Spot gold remained more or less unchanged at $1,089.20 per Oz by 0035 GMT. The upside potential in gold was limited by slow physical demand from top consuming Asian countries including India and China.
The gold in India continued to remain weak for the second straight session edging lower by Rs 35 per 10 grams to Rs 26,350 per 10 grams on slowing demand from retail buyers and jewellers. However, Silver prices held steady at Rs 34,000 per kg on modest demand from industrial units and coin makers.
Tariff value is the base price on which the customs duty on imported gold or silver is calculated and it further helps prevent under-invoicing.
