By Anil Mathews (ScrapMonster Author)
January 01, 2016 06:24:05 AM
MUMBAI (Scrap Monster): The
Indian Government today has announced cut in import tariff value for gold.
However, import tariff value on silver has been increased.
The import tariff value of gold has been reduced marginally by nearly over 0.5%, in accordance with prices of precious metals in the international market. Meantime, tariff value on imported silver has been increased marginally by less than 1.0% for the first fortnight period of the current month.
The Central Board of Excise and Customs (CBEC) issued notification in this regard lowering the gold import tariff value to $345 per 10 grams. The import tariffs are being reduced from the existing $347 per 10 grams. Meanwhile the import tariff value of Silver has been raised from $448 per kilogram to $452 per kilogram.
The government move to cut the import tariff value is in primarily on account of declining gold prices in the global and domestic markets. The precious metal has been trading in a narrow range for the past one week.
Meanwhile, gold prices rose marginally by 0.2% in Singapore to $1,070 per Oz. It must be noted that gold prices had plunged by nearly 10% during the entire year 2015, ending the year with a third straight annual loss. The sharp fall in yellow metal prices was mainly attributed to the US monetary policy decisions and rising strength in dollar.
Meantime, gold in India rebounded on the first trading day of 2016. The prices were up by Rs 120 per 10 grams to Rs 25,510 per 10 grams on revival of demand from retail buyers and jewellers. However, Silver held steady at Rs 33,300 per kg on static demand from industrial users and coin makers.
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.