Tariff Value On Gold Reduced By The GovernmentNews | May 10, 2012 at 6:21 am
On 23rd March 2012, the auspicious day of Gudi Padwa, the government reduced the tariff value of gold. Previously the tariff for gold imports was $ 573 for every 10 grams. But now the there is a reduction of $ 43. The revised tariff is $ 530 per 10 grams.
However, the tariff of silver imports is not modified. The current tariff of silver import is $ 1,036 for every kilogram. Bullion traders and jewelers had strongly opposed the move of the government when it had increased the custom duty on gold to 4 %. Previously it was 2 %. And if that was not enough, the government also levied an additional 1 % excise duty on unbranded jewelry.
The government plans to restrict the import of gold. With imports increasing at an atrocious rate, the government is looking for suitable ways and means to curb or rather control the import of gold so that the curr ent account deficit is eased.
To deter the import of gold in January 2012 the government had increased the custom duty on gold to 2 % which is double the previous 1 %. Besides gold, the custom duty on silver also was doubled from the previous rate of 3 % to the new 6 %.
In the initial eleven months in 2011-12, gold of approximately $ 60 billion was imported. This astonishing figure made the government contemplate restricting the import.