By Paul Ploumis 16 Jul 2015 Last updated at 07:48:55 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 nearly 1.6% and that of silver by over 3.5%, in accordance 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 $376 per 10 grams. The import tariffs are being slashed from the existing $382 per 10 grams. Meanwhile the import tariff value of Silver has been lowered from the existing $516 per kilogram to $498 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.
Meanwhile, gold prices edged lower on Singapore session today, on the back of rising dollar strength and higher US interest rate hopes. The prices slipped to four-month low level of $1,146.19 per Oz. US gold futures for August delivery were down nearly 0.2% to $1,145.20 an ounce. The boost in US dollar has dented the demand for the yellow metal as an asset. The gold prices are most likely to remain under pressure especially on hopes that US Fed may hike interest rates towards the year-end. Analysts also expect the US labour markets to post robust growth here onwards.
The gold in India declined almost Rs 120 per 10 grams to Rs 26,130 per 10 grams on declining demand from retail buyers. Industrial demand for gold also remained weak. Silver too witnessed significant fall on lack of demand. The prices plunged by Rs 480 to Rs 34,700 per kg.
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.