Copper Producers Demand GST Cut Amid Record Prices
India's copper producers are pushing for a significant reduction in the Goods and Services Tax (GST) on copper products, currently set at 18%.
The Indian Primary Copper Producers Association, led by president Rohit Pathak, is in talks with the government to bring down the tax rate to 5%, citing record-high copper prices as a major concern.
Copper prices have reached an all-time high of USD 14,700 per tonne on the London Metal Exchange this month, leading to increased working-capital requirements across the supply chain.
According to Pathak, primary producers and downstream manufacturers are bearing the upfront tax burden, which is locking up capital that could be used for expansion and investment.
The domestic copper industry is currently undertaking a multibillion-dollar investment programme, and Pathak argues that reducing the GST would unlock USD 3.6 billion in tied-up capital.