NEW DELHI: The government on Friday raised tariff value on gold imports while FMC hiked margins on the commodity in futures trading, twin steps to control inbound shipments of the precious metal and check volatility in its trading.
Meanwhile, Prime Minister Manmohan Singh called for curbing gold demand. "Clearly, we need to reduce our appetite for gold, economize the use of petroleum products and take steps to increase our exports," Singh said while making a statement in Parliament.
"In 2010-11 and the years prior to it, our current account deficit was more modest and financing it was not difficult, even in the crisis year of 2008-09. Since then, there has been a deterioration, mainly on account of huge imports of gold, higher costs of crude oil imports and recently, of coal," he said.
The CBEC raised the tariff value of gold to $461 per 10 grams from $432. Tariff value is base price on which the customs duty is determined to prevent under-invoicing.
Commodity markets regulator FMC hiked initial margins in gold futures to 5% besides an additional margin of 5% on all the gold, effective September 2.
