NEW DELHI (Commodity news world ): India Government has enhanced the import tariff value of gold from $526 per 10 grams to $573 per 10 grams while the value was enhanced from $953 per kg to $1145 per kg for silver imports.
This was announced in notification by Central Board of Excise and Customs (CBEC) under Ministry of Finance issued on February 29, according to an official release. In January this year, the government had notified ad valorem based import tariff for gold and silver at 2% and 6% respectively as against the previous flat rate of Rs 300 per 10 gm and s 1500 per kg respectively fo gold and silver.
Increase in tariff value and tariff was effected with the twin objective of preventing under-invoicing of imported precious metals and discourage import of gold to ease pressure on balance of payments. After crude oil, gold is the most imported commodity in India in terms of value.
However, the recent hikes in tariff value were opposed by bullion traders and jewellers as it would reduce demand as the increased costs have to be passed on to consumers. The current wedding season in India which began in mid-January and lasts till May has seen a drop in jewellery sales due to depreciation of rupee and higher import costs of precious metals.
Increase in tariff value and tariff was effected with the twin objective of preventing under-invoicing of imported precious metals and discourage import of gold to ease pressure on balance of payments. After crude oil, gold is the most imported commodity in India in terms of value.
However, the recent hikes in tariff value were opposed by bullion traders and jewellers as it would reduce demand as the increased costs have to be passed on to consumers. The current wedding season in India which began in mid-January and lasts till May has seen a drop in jewellery sales due to depreciation of rupee and higher import costs of precious metals.
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