Indian copper makers lobby for GST reduction to free $3.6 billion in capital

The Indian Primary Copper Producers Association, led by President Rohit Pathak, is seeking a reduction of the Goods and Services Tax on copper products from the existing 18% to 5%. The association argues that the high tax rate is locking up as much as $3.6 billion in working capital, which could otherwise support industry growth. Record copper prices this year, topping $14,700 a ton on the London Metal Exchange, have intensified cost pressures for a sector that relies heavily on imports following the 2018 closure of Vedanta Ltd.’s Sterlite smelter.

Primary producers such as Hindalco Industries Ltd., which processes concentrates on a three-month cycle, are feeling the strain. Downstream manufacturers and cable dealers are also cutting inventories because holding stock has become costly. Pathak says the proposed GST cut would unlock capital and help sustain the multibillion-dollar investment push underway in India’s copper industry.