Indian Copper Producers Lobby Government for GST Tax Cut

The Indian Primary Copper Producers Association is lobbying the Government of India to reduce the Goods and Services Tax on copper from 18% to 5%. Association President Rohit Pathak argues that record-high copper prices, which topped $14,700 a ton on the London Metal Exchange this month, are tying up essential working capital across the supply chain.

Pathak estimates that a tax reduction could unlock up to $3.6 billion in capital, which the industry plans to use for a multibillion-dollar investment push. The financial pressure is intensified by India's heavy reliance on imports following the 2018 shutdown of the Vedanta Limited Sterlite smelter. This reliance has forced cable makers and dealers to sharply reduce inventories to avoid the high costs of stockpiling.

Primary producers, including Hindalco Industries, are facing increased working-capital requirements driven by a three-month concentrate cycle. The association maintains that the current tax structure hinders the ability of firms to deploy funds toward industry expansion.