The government on Tuesday slashed the import tariff value on gold and silver to $59 per 10 grams and $ 470 per kg respectively, following weak global cues.
In the first fortnight of this month, the tariff value on imported gold was $369 per 10 grams and on silver it was $ 471 per kg.
The import tariff value is the base price at which the customs duty is determined to prevent under-invoicing. The tariff value is 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, gold prices today fell marginally to $1106.63 per ounce ahead of the meeting of US Federal Reserve on interest rates.
Silver prices also declined by 0.7 per cent to $ 14.33 per ounce over the last year. In the national capital too, gold prices dropped marginally to Rs 26,350 per 10 grams and silver to Rs 34,500 per kg taking weak dues from the global market.
The country's gold imports increased by 140 per cent to $ 4.95 billion in August this year, from $ 2.06 billion in the same month last year, 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 exports.
