Amid short supply of gold in the domestic market during the festival season, the government on Wednesday hiked the import tariff value of gold to $442 per ten gram in line with global prices of the precious metal.
The tariff value, the base price at which the customs duty is determined to prevent under-invoicing, stood at $418 per 10 gram for gold during the last fortnight.
The notification in this regard has been issued by the Central Board of Excise and Customs (CBEC), an official statement said.
However, the import tariff value of silver has been kept unchanged at $699 per kg. Similarly, the tariff value of other imported items such as brass scrap, poppy seeds, areca nut and some edible oils has also been kept unchanged.
The tariff value on imported gold has been revised upward taking into account the price volatility of the precious metal in the global market.
In Singapore, gold prices rose to $1345.40 per ounce at 1200 hours, while silver stood at $22.62 per ounce.
In the domestic market, gold is being sold at a high premium due to supply crunch caused by government measures to restrict the import of precious metal in an effort to cut current account deficit.
In the domestic market, gold is being sold at a high premium due to supply crunch caused by government measures to restrict the import of precious metal in an effort to cut current account deficit.
India, the world's largest consumer of gold, has imported 393.68 tonnes of the yellow metal during the April-September period of this year, as per official data.
The government has taken several steps to reduce gold imports including hike in custom duties.