Indian government raises import tariff value of gold, silver by 4%.

The Indian Government on Thursday announced hike in import tariff value for gold and silver. The import tariff value of gold was hiked by 3.83% and that of silver was hiked by 3.92%, in tandem with the precious metal prices in the international market.

The Central Board of Excise and Customs (CBEC) issued notification in this regard raising the gold import tariff value to $407 per 10 grams. The import tariffs are being hiked from the existing $392 per 10 grams. Meanwhile the import tariff value of Silver has also been hiked from $638 per kilogram to $663 per kilogram.

The government move to raise the import tariff value is in track with the firm gold prices in the global and domestic markets. Gold in India gained Rs 15 on Thursday to touch Rs. 30,050 per 10 grams. On the other hand, Silver made a sharp rebound of Rs.100 to close the day at Rs. 44,800 per kilogram. The recovery in commodity prices from the bottom has forced the government to raise the import tariff for silver.

According to latest released official government data, gold and silver imports during the period from April top December 2013 declined 30.3% to $27.3 billion when compared with the total imports of $39.2 billion during the corresponding period in 2012.

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.

Source : resourceinvestor.com