Author: Paul Ploumis01 Aug 2014 Last updated at 08:19:57 GMT

MUMBAI (Scrap Monster): The Indian Government today announced cut in import tariff value for gold and silver. The import tariff value of gold was slashed by 1% and that of silver was kept unchanged, in tandem with prices of precious metals in the international market.

The Central Board of Excise and Customs (CBEC) issued notification in this regard reducing the gold import tariff value to $421 per 10 grams. The import tariffs are being slashed from the existing $425 per 10 grams. Meanwhile the import tariff value of Silver has been left unchanged at $671 per kilogram.

The government move to lower the import tariff value is in track with the weakening gold prices in the global and domestic markets.

The international gold prices have seen a sharp slide in recent days. Gold prices fell nearly $14 to $1,282.6 per ounce. Meanwhile, gold in India remained flat at Rs. 27,925 per ten grams in New Delhi aided by falling Rupee. According to analysts, domestic gold prices are less likely to drop further from current levels. Moreover, the demand is expected to pick up with marriage and festival season ahead.

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.