India hikes import tariff value on gold and silver

MUMBAI (Scrap Monster): The Indian Government today announced hike in import tariff value for gold and silver. The import tariff value of gold was increased by nearly 7%, in accordance with prices of precious metals in the international market. Meantime, tariff value on imported silver has been increased considerably by almost 10% for the second fortnight period of the current month.

The Central Board of Excise and Customs (CBEC) issued notification in this regard elevating the gold import tariff value to $388 per 10 grams. The import tariffs are being hiked from the existing $363 per 10 grams. Meanwhile the import tariff value of Silver has been increased from $443 per kilogram to $487 per kilogram.

The government move to increase the import tariff value is in primarily on account of rebounding gold prices in the global and domestic markets. The strong cues from the market indicate that there is more upside left for gold prices.

Meanwhile, gold prices edged higher, on the back of US Fed Chair Janet Yellen’s statement that US interest rates would rise gradually. The US economy faces risks from tighter credit markets, uncertainty in Chinese growth progress and volatile financial markets around the globe. Gold bullion for immediate delivery surged higher by 1.5% to $1,214.64 an ounce., the highest level in almost 8.5 months. The yellow metal has rallied nearly 14% since the start of the current year.

The gold in India edged higher for the second straight day. Gold futures surged higher by 1.19 per cent to Rs. 28,655 per 10 grams. MCX Gold for delivery in April jumped by Rs. 338 to touch Rs. 28,655 per 10 grams.

Tariff value is the base price on which the customs duty on imported gold or silver is calculated and it further helps prevent under-invoicing.