Article - Indian govt cuts base import price of Gold & Silver
The Government of India has cut the base import price (or tariff value) of gold. This revision is generally done fortnightly by the Central Board of Indirect Taxes and Customs (CBIC) to align the domestic import value with international price trends.
Here are the full details based on the most recent revision:
🪙 Key Details of the Price Cut
| Precious Metal | Revision | New Base Import Price | Previous Base Import Price |
| Gold | Reduced by $42 per 10 grams | $1,285 per 10 grams | $1,327 per 10 grams |
| Silver | Reduced by $107 per kilogram | $1,556 per kilogram | $1,663 per kilogram |
📐 What the Base Import Price Means
The base import price or tariff value is an official reference price set by the government to:
Calculate Duty: It serves as the official assessable value on which the percentage-based customs duty is charged.
Prevent Under-Invoicing: By setting a base price, the government prevents importers from artificially lowering the declared value of imported goods to pay less customs duty.
When the international prices of gold and silver fall, the government generally reduces the base import price to reflect the lower global rate.
📈 Impact of the Reduction
A reduction in the base import price generally has the following effects:
Reduced Tax Burden: By lowering the price on which the duty is calculated, the government effectively reduces the tax amount paid by the importer.
Domestic Prices: This move may help moderate domestic gold and silver prices slightly, easing cost pressures for jewellers and consumers.
However, the overall retail price is also heavily influenced by global prices, the Rupee-Dollar exchange rate, and the fixed customs duty rate (currently 6% total effective duty in 2025 as per recent reports). Market Alignment: It helps keep domestic pricing better aligned with ongoing fluctuations in the international commodity market.
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