By Anil Mathews (ScrapMonster Author)
December 18, 2015 05:49:12 AM
MUMBAI (Scrap Monster): The Indian Government today announced hike in import tariff value for gold. On the other hand, import tariff value on silver was reduced. The import tariff value of gold was increased marginally by nearly 0.87%, in accordance with prices of precious metals in the international market. Meantime, tariff value on imported silver has been dropped modestly by 2.82% for the second fortnight period of the current month.
The Central Board of Excise and Customs (CBEC) issued notification in this regard elevating the gold import tariff value to $347 per 10 grams. The import tariffs are being hiked from the existing $344 per 10 grams. Meanwhile the import tariff value of Silver has been reduced from $461 per kilogram to $448 per kilogram.
The government move to raise the import tariff value is in primarily on account of stabilizing gold prices in the global and domestic markets.
Meanwhile, gold prices edged higher in Asia on Friday after the US Fed announcement of interest rate hike, very much in line with street expectations. Gold for February delivery rose marginally by 0.05% to $1,051.10 per troy ounce on Comex division of the New York Mercantile Exchange. It must be noted that gold futures had tumbled to near six-year lows, by dropping around $30 per ounce on Thursday. Silver futures for March delivery too have gained slightly by 0.11% to $13.720 per troy ounce.
The gold in India was seen hovering around Rs 25,500 per 10 grams on Thursday. Buying activity is expected to pick up gradually as trade sees lesser chances of further drop in gold prices. Gold contracts for February opened at Rs 25,370 per 10 gm, slightly lower by 0.38% when compared with previous day closing.
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.