India may reduce import tariff value on Gold further in interim budget

INDIA February 06 2014 5:23 PM 

MUMBAI (Scrap Register): Indian government may reduce import tariff value on Gold further in interim budget, as per local media reports. Import tariff value is the base price on which the customs duty is determined to prevent under-invoicing.

According to sources, the government may not wait till end of the financial year as the current account deficit has improved. Besides, the worrisome factor is that various filed formation in customs are reporting rampant gold smuggling. Currently the import duty on gold is ruling around 15% after three tranches of hikes last year.

In early February, India has trimmed its import tariff value of gold and silver mainly on volatility in the global markets. The tariff value is revised on a fortnightly basis after analyzing the global price trend.

Indian government has trimmed its import tariff value of gold from $407 per ten grams to $404 per 10 grams and silver from $663 per kilo gram to $635 per kilo gram.