Notwithstanding the recently fall in gold prices, the Government on Thursday reduced the base price for calculating customs duty on gold and silver imports for the second time in the last four days.
A lower base rate will make gold imports cheaper for jewellers. The base price is revised periodically by the Government to prevent jewellers from under invoicing. The drop in base price reflects the sharp drop in the international bullion prices in the last few weeks.
The tariff value of gold was cut to $449 per 10 grams from $499 fixed on Tuesday, while that of silver was slashed to $762 per kg against $890, according to a notification issued by the Central Board of Excise and Customs.
Despite the Government cutting the tariff, industry does not expect gold imports to improve.
The steady fall in gold prices has put buyers in a quandary. While some buyers are postponing their purchases in anticipation of further fall in prices, many are busy making good of the opportunity.
Ashok Minewala, former Chairman, Gem and Jewellery Trade Federation, said imports have been sliding for the last few months and will dip further this fiscal.
“With the wedding season round the corner, some people are taking advantage of the price fall, but this will not sustain in the long run,” he said.