Indian officials have confirmed the cancellation of tax incentives on precious metal imports, raising the cost of gold and silver imports.

India has withdrawn tax incentives for banks and government-designated agencies importing gold, silver, and platinum, imposing a 3% tax on such imports, thereby raising import costs for the country's main supply channels. Srivastava, Secretary of the Tax Affairs Department at India's Ministry of Finance, said on Thursday that the Indian government has not extended the policy exempting banks from integrated goods and services tax on precious metal imports beyond March 31. This move subjects all import channels for gold and silver to uniform tax treatment. Srivastava stated that the decision took effect on April 1, "We do not want taxation to be a reason for one import channel to enjoy preferential treatment." He added that the government had informed the Goods and Services Tax Council of this decision at a meeting held on Thursday.