Tumbling gold price calls for further import tariff value cuts by India

Gold  |  2013-05-22 05:45:40   |   By

Tracking the subdued gold price in the global market, the Indian government today announced a second round of import tariff value cuts on gold

NEW DELHI (Scrap Monster) : Tracking the subdued gold price in the global market, the Indian government today announced a second round of import tariff value cuts on gold. The Central Board of Excise and Customs (CBEC) issued notification in this regard, slashing the import tariff value of gold to $440 per ten grams while keeping the same for silver unchanged at $761 per kilogram.

The import tariff value is now being cut by 5.58%. The government earlier on May 16th had cut down the import tariff value on Gold from $472 per ten gram to $466 per ten gram. Simultaneously, the import tariff value on Silver too was marginally lowered from $762 per kilogram to $ 761 per kilogram. This is the second consecutive cut in import tariff value on Gold by the Indian authorities during the month.

The plummeting price of Gold in the global market has obligated the Indian government to slash the tariff value. The yellow metal had fallen for eight consecutive sessions before staging a mild pullback. Spot gold was last trading up by $11.80 at $1388.80, not too far away from the April 16th lows of $1,321.35. The spot gold prices in India is seen hovering around Rs.27,000 per ten grams. The prices of gold have tumbled by nearly 18% for the year.

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