Gold Import Tariff Reduced by Central Government
New Delhi: The government of india has finally decided cut down gold import tariff which is undoubtedly a good news for gold trading industry in the country. It has come as sigh of relief for investors and gold improving companies and commercial banks. The government announced that it has reduce tariff value on gold to $375 per 10 grams and for silver it will be $512 per kilogram. The decision was long awaited, but given the fact global price trend for gold and silver is on the downwards movement, it was inevitable that the government will reduce the import tariff sooner or later. Until last month tariff value was fixed at $393 per 10 gram imported gold and for silver it was fixed at $549 per kilogram. The prices are revised based on global prices.
On Friday, the finance minister of India notified the Central Board of Excise and Customs about the newly fixed import tariff on gold and silver. The importance of this announcement is even more significant because it is the second largest imported commodity after petroleum in India and it has a direct and indirect impact on country’s economy because if the import duty is higher on gold and silver it will directly affect the current account deficit.
On the other hand, government of India has been consistently asking its citizens to avoid investing in gold and instead invest in other options to help the country reduce its import of gold and silver, however, the gold obsessed country has not been able to cut down its import as it would like to.