India abolished tax incentives for banks and government designated agencies to import gold, silver and platinum, and levied a 3% tax on related imports, thus driving up the import costs of the country's main supply channels. India's Treasury Secretary of Taxation Srivastava said on Thursday that the Indian government has not extended the policy of exempting banks from paying comprehensive goods and services taxes on imported precious metals until after March 31. This move exposed all import channels for gold and silver to uniform tax treatment. Srivastava said that the decision was implemented on April 1, and “we don't want taxes to be the reason why certain import channels enjoy preferential treatment.” He added that the government had informed the Goods and Services Tax Commission of the decision at a meeting held on Thursday.

India abolished tax incentives for banks and government designated agencies to import gold, silver and platinum, and levied a 3% tax on related imports, thus driving up the import costs of the country's main supply channels. India's Treasury Secretary of Taxation Srivastava said on Thursday that the Indian government has not extended the policy of exempting banks from paying comprehensive goods and services taxes on imported precious metals until after March 31. This move exposed all import channels for gold and silver to uniform tax treatment. Srivastava said that the decision was implemented on April 1, and “we don't want taxes to be the reason why certain import channels enjoy preferential treatment.” He added that the government had informed the Goods and Services Tax Commission of the decision at a meeting held on Thursday.