The government on Friday reduced the import tariff value of gold to $440 per ten gram but raised it on silver to $738 per kg in line with global prices. The Central Board of Excise and Customs (CBEC) said in an official statement on Friday.
The import tariff value is the base price at which the customs duty is determined to prevent under-invoicing. The tariff value on imported gold was hiked two days back to $442 per ten gram, while it was kept unchanged at $699 per kg for silver.
Normally, the import tariff value is revised on a fortnightly basis. The sudden revision has taken place in view of volatility in the global prices.
The import tariff value on gold and silver has been changed taking cues from the global market.
In Singapore, the yellow metal is ruling down at $1322.2 per ounce and white metal at $21.87 per ounce.
In the domestic market, gold is being sold at a high premium due to supply crunch caused by government measures to restrict the import of precious metal in an effort to cut current account deficit.
India, the world’s largest consumer of gold, imported 393.68 tonnes of the yellow metal during the April-September period of this year, as per official data.
The government has taken several steps to reduce gold imports including hike in custom duties.