Increase in customs tariff for gold and silver
Posted on: 19/Aug/2015 8:46:50 AM
Customs tariff value for gold and silver import to the country is hiked by the Finance Ministry. The tariff value for gold is now hiked to Rs. 363 per 10 grams which was earlier Rs. 354 per 10 grams. For silver, the tariff value is increased from Rs 477 per kilogram to Rs 499 per kilogram.
This move is made following a surge in gold import by 62 percent as of July this year. During this month, the overall gold import was 75 tonnes which is way higher than in June which was 57 tonnes.
What is tariff value?
It is the base price at which levying customs duty is made.
Next to oil, India spends much as largest expense for gold. India stands next to China in the consumption of gold across the world. During this financial year, a volume of 900 to 1000 tonnes of gold is likely to be imported in the country. This hike in the customs tariff of gold import is not prone to affect the demand for the yellow metal in anyway, says Saloni Roy, the Senior Director of Deloitte in India.
India is likely to import larger quantity of the metal as the festival season is fast approaching. She added that the increase in tariff is just a dampener with the fast approaching festival season.
In India, among the highest imported items are gold and silver! This increase in tariff can be helpful for the account deficit of the country which is recently impacted owing to the import of the precious metal. The government continuously insists people to abstain from purchase of gold and prefer investing on other saving means. However, as gold is considered auspicious, the yellow metal continues to be favorite for investment.
