Govt cuts tariff on imported gold for 2nd straight day

The government on Thursday slashed the import tariff value on gold for the second straight day to $ 414 per 10 grams and silver to $672 per kg, in line with weak global prices of the precious metals.

The import tariff value, which is the base price at which the customs duty is determined to prevent under-invoicing, was revised downward for gold on Wednesday.

According to the notification issued by the Central Board of Excise and Customs (CBEC), the tariff value on imported gold has been brought down to $414 per 10 grams from $ 417 per 10 grams on Wednesday.

Similarly, the import tariff value on silver has been cut to $672 per kg from $738 per kg in the review period.

However, the tariff value has been hiked on imported brass scrap and some vegetable oils.

The import tariff value on RBD palmolein has been raised to $960 per tonne from $899 per tonne that prevailed till yesterday, while crude soyabean oil to $1,023 per tonne from $1,006 per tonne.

The tariff value has been changed because of volatility in global prices of these imported items.

In case of gold and silver, international prices are showing a declining trend with rates of yellow metal in the Singapore market ruling down at $1,289 an ounce.

However, domestic gold prices closed at Rs 31,720 per 10 grams and silver at Rs 48,000 per kg in the national capital today.

India, the world's largest consumer of gold, imported 393.68 tonnes of the yellow metal during the April-September period of this year, as per official data.

The government has taken several steps to reduce gold imports, including hike in custom duties.