Copper Producers Seek GST Cut Amid Record Prices

Indian primary copper producers are seeking a reduction in the Goods and Services Tax (GST) from 18% to 5%, citing record-high prices that have increased working-capital requirements across the supply chain.

The Indian Primary Copper Producers Association is discussing this proposal with the government, according to its president Rohit Pathak. The move could unlock up to $3.6 billion of capital currently tied up in tax payments.

Copper prices have climbed to record levels globally, reaching over $14,700 a tonne on the London Metal Exchange this month. This has led to higher financing pressures and working-capital requirements for primary producers and downstream manufacturers.

Pathak stated that primary producers and downstream manufacturers both bear the upfront tax burden when purchasing feedstock or copper products. As a result, they have more capital tied up in GST payments.