Govt hikes tariff value of imported gold to $442 per 10gm

The government on Wednesday hiked the import tariff value of gold to $442 per ten gram in line with global prices of the precious metal despite an expected increase in demand for the precious metal ahead of the coming festivals.

The tariff value is the base price on which the customs duty is determined to prevent under-invoicing by importers and the present hike is expected to dampen gold demand during the festival season.

Tariff value for gold stood at $418 per 10 gram during the last fortnight.

The notification issued by the Central Board of Excise and Customs (CBEC), however, kept the import tariff value of silver unchanged at $699 per kg.

Tariff value of other imported items such as brass scrap, poppy seeds, areca nut and some edible oils has also been kept unchanged.

The hike in tariff value on imported gold takes into account the price volatility of the precious metal in the global market.

Gold prices in Singapore rose to $1,345.40 per ounce in late morning trade while silver prices stood at $22.62 per ounce.

Gold is sold in the domestic market at a high premium due to supply constraints caused by government measures to restrict imports in an effort to reduce the current account deficit.

India, the world's largest consumer of gold, has imported 393.68 tonnes of the yellow metal during the April-September period of this year, official data show.