The Union government on 16 May 2013 slashed the import tariff value of gold and silver to 466 Dollars per ten grams and 761 Dollars per kg, respectively.
The decision to slash the import tarrif was taken Central Board of Excise and Customs (CBEC) after considering weak global price trend. Earlier in April 2013, the tariff value of gold was 472 Dollars per ten grams, while silver was 762 Dollars per kg.
Government has cut the import tariff value of gold as international prices of gold and silver showed a declining trend as investors shifted funds to equities with firming up of dollar.
Tariff value is actually the base price on which the customs duty is determined to prevent under—invoicing.
Important Points to remember
• The government has also hiked the tariff value of crude palm oil to 831 per tonne from 827 Dollars per tonne, while RBD palm oil has been reduced to 836 per tonne from 857 Dollars tonne in 27 April 2013.
• The tariff value of crude soyabean oil and their varieties of palm oil have also been raised.
• In the London market, gold prices fell by 1.6 per cent to 1370.82 Dollars per ounce, while silver declined by 1.8 per cent to 22.20 dollars an ounce.
• Similarly, gold prices in the national capital fell by 500 Rupees to 26800 Rupees per ten grams, while silver dropped by 1000 to 43700 rupees per kg.