India hikes import tariff on gold, silver

The government today raised import tariff value on gold to USD 385 per 10 grams and silver to USD 543 per kg, taking cues from firm global price trends.

During the last fortnight of March, the tariff value on imported gold was USD 375 per 10 grams and on silver at USD 512 per kg.

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, according to an official statement.

In Singapore market, gold prices were ruling firm at USD 1,186 per ounce, while that of silver at 16.72 per ounce. A similar trend prevailed in the domestic market.

In the national capital, gold and silver is available at Rs 26,575 per 10 grams and Rs 37,200 per kg, respectively.

Gold is the second-largest import item for India after petroleum. Higher gold import bill adversely affects the country's current account deficit (CAD).

The government has been repeatedly asking people to desist from buying gold and instead invest in other saving instruments.