Govt cuts gold, silver import tariff

The government on Wednesday reduced marginally the import tariff value of gold to $382 per 10 grams and of silver to $516 per kg considering weak global price trend in the wake of Greece crisis.

For last fortnight, the tariff value of gold was fixed at $385 per 10 grams and silver at $519 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 decrease in tariff value on imported gold and silver has been notified by the Central Board of Excise and Customs, according to an official statement.

The tariff value of these two items has been reduced due to flat to weak price trend in the global market following the Greece debt crisis.

At London market, which normally sets price trend on the domestic front, gold and silver prices were ruling down at $1,172 per ounce and $15.57 per ounce, respectively, on Wednesday.

In the national capital too, gold prices declined by Rs 140 to Rs 25,710 per 10 grams and silver rates fell slightly to Rs 36,050 per kg.

Gold imports in India, the world's biggest consumer, grew 10.47 per cent to $2.42 billion in May on declining prices and easing of restrictions by RBI, as against $2.19 billion in the same month of 2014.

Since 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.