The government today slashed the tariff value of gold and silver to $499 per 10 gm and $890 per kg, respectively, in light of the plummeting internal prices of the precious metals.
The new tariff value compares with the $521 fixed for the first fortnight of April and the corresponding tariff value of silver of $920 per kg.
Gold, which has been on the rise for 12 years continuously, has suddenly declined as investors turned reluctant buyers. After having dropped five per cent on Friday, gold continued its fall and slipped over nine per cent on Monday in the global market.
Tariff value is the base price on which the customs duty is determined to prevent under-invoicing.
According to the notification issued by the Central Board of Excise and Customs (CBEC), the tariff value of gold and silver has been reduced, while tariff value of RBD palmolein has been raised marginally.
The government reduced import tariff value of precious metals following weak price trend in the global market, where gold plunged 9.35 per cent to $1,360.60 an ounce at the New York exchange. The metal has dropped by $200 an ounce, or nearly 13 per cent, in the last two trading days.
Tracking weak global cues, gold prices fell in the national capital by Rs1,160 per ten gm to 21-month low at Rs26,440.
The government, meanwhile increased the tariff value of RBD palmolein to $867 per tonne from the earlier $863 per tonne.