Government raises tariff value on gold and silver

The government on Monday raised the import tariff value on gold to $354 per 10 gram and on silver to $457 per kg as per global price trends.

During the first fortnight of this month the import tariff value on gold was at $345 per 10 and on silver it was $452 per kg.

The import tariff value is the base price at which the customs duty is determined to prevent under-invoicing. It is normally revised on a fortnightly basis.

The change in tariff value of these precious metals has been notified by the Central Board of Excise and Customs.

Globally, gold rose by 0.4% to $1,093.46 an ounce in Singapore.

Gold prices were ruling at Rs 26,385 per ten gram at the bullion market here while silver was quoted at Rs 34,000 per kg.

Gold is the second-largest imported item for India after petroleum. In December 2015, gold imports more than doubled to $3.80 billion from $1.36 billion in December 2014.

Higher gold import bill adversely affects the country's current account deficit, which occurs when value of import of goods and services is more than the exports.