Govt hikes import tariff on gold, silver

The government has increased the tariff value of gold and silver marginally amidst rising overseas prices of the precious metals and growing demand for gold jewellery in the country.

The revised import tariff value for gold now stands at $561 per 10 gm while for silver it is $1,058 per kg. The tariff value of gold and silver stood at $556 per 10 gram and $1,039 a kg, respectively, in October.

The Central Board of Excise and Customs (CBEC) revises the tariff value every fortnight, based on which price customs duty is determined to prevent under-invoicing.

Meanwhile, gold demand in the country increased 9 per cent to 223.1 tonnes in the July-September quarter aided by rising consumer demand and restocking by traders ahead of the festival and wedding seasons, according to the World Gold Council (WGC).

In value terms, the demand for gold grew 27 per cent to Rs65,373 crore, compared to Q3 of 2011.

India's gold demand stood at 204.8 tonnes in Q3 of 2011, the WGC said in its 'Gold demand trends report: Q3' released today.

The government, meanwhile, reduced the import tariff value of RBD palmolein and brass scrap to $887 per tonne and $4,029 per tonnes, respectively from $889 per tonne and $4,096 per tonne, respectively, last month.