The government today hiked the import tariff value on gold and silver to USD 426 per 10 grams and USD 650 per kg, respectively, taking cues from firm global prices.
For the first fortnight of this month, the tariff value on imported gold stands at USD 421 per 10 grams, while that for silver at USD 671 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 considering volatile global prices.
The hike in tariff value on imported gold and silver has been notified by the Central Board of Excise and Customs, an official statement said.
In London market, gold was trading firm at USD 1,316.43 an ounce today, while the yellow metal was available at Rs 28,800 per 10 grams in the national capital.
Gold is the second largest import item for India after petroleum. The government has imposed several restriction to curb imports to contain current account deficit (CAD).
Recently, Commerce and Industry Minister Nirmala Sitharaman had pitched for relaxing gold import duty saying it was 'badly' hurting the gems and jewellery industry.
The curbs on gold imports may have had impact on CAD but "it has also brought back the horrible days of smuggling of gold," she had said.
To reduce trade deficit, the government last year raised its gold import duty to a record 10 per cent and made it mandatory to export 20 per cent of the imported gold.