[India cancels key tax incentives for gold imports, pushing up the cost of main import channels] On October 9th, India canceled the tax incentives for banks and government-designated institutions to import gold, silver and platinum, and levied a 3% tax on related imported goods, thereby increasing the cost of the main channels for supplying one of the world's largest precious metal markets. Revenue Secretary Arvind Shrivastava told reporters in New Delhi on Thursday that the government has not extended the exemption from Integrated Goods and Services Tax (IGST) on imports of precious metals through banks beyond March 31 this year. The move puts all gold and silver import channels on equal footing in terms of tax treatment. Shrivastava said the decision was taken to "avoid taxes from becoming a reason for one import channel to be preferred over another." India strictly controls gold imports. Most gold enters the country through authorized banks and designated institutions, while eligible jewelers can import through the International Precious Metals Exchange of India. The new tax regime will tie up more working capital of these importers.