The government on Monday reduced import tariff value on gold to $388 per 10 grams and on silver to $540 per kg, following global price trends.
The tariff value on imported gold was at $401 per 10 grams and silver at $575 per kg for the last fortnight of previous month.
The import tariff value is the base price at which customs duty is determined to prevent under-invoicing. It is revised on a fortnightly basis taking into account global prices.
The increase in tariff value on imported gold has been notified by the Central Board of Excise and Customs, an official statement said.
Globally, gold in Singapore, which normally sets price trend on the domestic front, fell 2.1 per cent to $1,142.88 an ounce, the lowest level since November 7 and silver nosedived by over 8 per cent to $14.42 an ounce, the lowest price since August 2009.
In domestic market gold prices declined by Rs 200 at Rs 26,200 per ten grams in the national capital, similarly In line with overall weak trends, silver extended its slide and recorded a steep fall of Rs 1,080 to Rs 34,300 per kg on reduced offtake by industrial units and coin makers.
Easing restrictions on gold imports, the Reserve Bank on Friday had scrapped the controversial 80:20 scheme, a move which the industry believes will bring down prices of the precious metal.
Under the 80:20 norm, put in place in August 2013 to curb high gold inflows that was widening the current account deficit, at least 20 per cent of the imported gold had to be mandatorily exported before bringing in new lots.
Gold imports jumped 280 per cent to $4.17 billion in October, as per the latest trade data. The in-bound shipments touched 95 tonnes in September this year as against 12 tonnes a year ago.
