Taking cues from the global price trends, the government has raised import tariff value of gold to $388 per 10 grams and reduced the import tariff on silver to $524 per kg. The import tariff value which is revised on a fortnightly basis taking into account global prices, stood at $ 385 per 10 grams of gold and $543 per kg for silver, during the last fortnight of March.
The notification for the import tariff value which is the base price at which customs duty is determined to prevent under-invoicing was issued by the designated body, the Central Board of Excise and Customs. Gold in Singapore, which normally sets the price trend on the domestic front, rose 0.4 per cent to $1,207.70 an ounce and silver 0.3 per cent to $16.40 an ounce. Gold is the second-largest import item for India after petroleum. Higher gold import bill adversely affects the country’s current account deficit.
In the global market gold prices have been under pressure in recent days as investors wager that Fed officials might raise interest rates as early as June if economic data continue to show improvement. The US central bank has kept rates pinned near zero since December 2008 but is widely expected to move borrowing costs higher in the second half of 2015. Further, the China's slowing economy too has added to downward pressure on the precious metal.
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