New Delhi, Apr 1 (PTI): The government has reduced the import tariff value for gold to $421 per 10gm from $445 per 10gm earlier.
The import tariff value is the base price at which the government determines customs duty to prevent under-invoicing.
The import tariff value for gold has been lowered to $644 per kg from $694 per kg earlier, according to a Central Board of Excise & Customs (CBEC) notification.
The tariff value is revised on a fortnightly basis after analysing the global price trend.
Gold is the second largest import item for India after petroleum. The government had taken several measures to curb gold shipments to address the high current account deficit.
These measures include raising the import duty on gold to 10 per cent, and making it mandatory for traders to export 20 per cent of the imported gold.
According to the jewellers body, total gold imports are expected to be not more than 550 tonnes this fiscal because of the restrictions, against 845 tonnes in the last fiscal.
The Commerce Ministry has asked the Finance Ministry to relax curbs on gold imports.
Meanwhile, the Reserve Bank of India (RBI) has allowed more banks, including Axis Bank and Kotak Mahindra Bank, to import gold under the 80:20 scheme, a move seen as a precursor to easing restrictions on inward shipments of the metal.