Indian Government Hikes Import Tariff Value of Gold to $542\10gm

The government of India on April 16, 2012 increased the tariff value for gold imports to USD 542 per 10 grams from USD 539.

Similarly, the tariff value for silver too has been increased to Rs 1,051 per kilogram from Rs 1,032 per kg.

Tariff value is the base price on which the customs duty is determined.

After the crude oil, gold is the most imported commodity in India in terms of value.

Early this year, the government had changed the duty structure on gold and silver from specific to value-linked, making the precious metals more expensive.

In the Budget, the government had doubled the customs duty on gold to 4 per cent.

India, the world's biggest consumer of gold, imported 967 tonnes of gold in 2011.