Govt hikes import tariff value on gold and silver

The government has raised import tariff value on gold to $396 per 10 grams and on silver to $561 per kg in line with volatile global price trends.

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. The tariff value on imported gold was at $388 per 10 grams and silver at $540 per kg in the first fortnight of the current month.

Globally, gold and silver prices have been volatile in the last few weeks.

In London, gold prices on Tuesday rose 0.53 per cent to $1,199.80 per ounce, while silver rates too increased to $16.22 per ounce.

In the domestic market, gold prices showed a decline. Gold was sold at Rs 27,200 per 10 grams and silver at Rs 37,050 per kg in the national capital today.

Few days back, India - the world's largest consumer of gold - further eased import curbs by scrapping the controversial 80:20 scheme, under which importers were mandated to export 20 per cent of the total exports.

A recent report commissioned by Wold Gold Council (WGC) has suggested that India should move beyond import curbs and should come up with a national gold policy to put an estimated 22,000 tonnes of idle gold assets into active use.

The report also recommended launch of several investment products, establishment of a Gold Board for managing import-export, develop accredited refineries, drive gold monetisation by incentivising banks and introduce compulsory quality certification of gold.