Government slashes tariff value for gold imports further to $440 per 10 gm

The government today further slashed the tariff value for import of gold to $440 per 10 grams from $466 per 10 grams last week amidst a continued decline in international prices of the commodity.

It, however, kept the tariff value of silver unchanged at $761 per kg.

Tariff value is the base price on which the customs authorities decide the import duty to prevent under-invoicing.

The base tariff values apply to gold and silver in any form, the Central Board of Excise and Customs (CBEC) said in an official release.

The government, however, did not make any changes in the tariff values of the different varieties of vegetable oils, brass scrap and poppy seed imported into the country.

The reduction in the tariff value follows the weakening of commodity prices, especially those of precious metals and crude petroleum oil.

Gold prices in the Singapore market is ruling below $1,385 per troy ounce while silver is being traded around $23 per ounce.

Domestic prices of gold have also fallen from the Rs30,000 per 10 gram levels and are currently ruling around Rs27,000 per 10 grams. Silver is trading at around Rs44,200 per kg.

India, the world's largest consumer of the yellow metal, is estimated to have imported 215 tonnes of the metal during January-March amidst a decline in international prices, according to the World Gold Council.