The government on Saturday slashed import tariff value on gold to $391 per 10 grams and silver to $551 per kg following weak global price trends, says a PTI report.
During the last fortnight, the tariff value on imported gold was fixed at $401 per 10 grams and on silver at $575 per kg.
The import tariff value is the base price at which customs duty is determined to prevent under-invoicing. It is revised on a fortnightly basis taking into account global prices.
The decrease in tariff value on imported gold has been notified by the Central Board of Excise and Customs, an official statement said.
Gold in New York, which normally sets price trend on the domestic front, fell by 2.3 per cent to $1171.60 per ounce and silver by 1.73 per cent to $16.18 per ounce in Saturday's trade.
In the national capital, gold prices are ruling at Rs 26,550 per 10 grams, while silver at Rs 36,250 per kg today.
Gold is the second largest import item for India after petroleum. Gold import increased for the second straight month to 95 tonnes in September ahead of festival season.
The government has imposed several restriction to curb imports to contain current account deficit (CAD). Import duty on gold was increased three times to a record 10 per cent last year and made it mandatory to export 20 per cent of the imported gold.
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