From The Economic Times · Bloomberg · · 50s
Copper Producers Push for GST Cut
Copper producers demand GST reduction to free $3.6bn cash as prices hit record highs.
In brief
Copper producers demand GST reduction to free $3.6bn cash as prices hit record highs. Indian copper producers seek GST cut from 18% to 5% to unlock $3.6bn tied up in tax payments amid record copper prices. Originally reported by The Economic Times.
Copper Producers Seek GST Cut
Indian copper producers want lower tax rates to free cash locked up in the supply chain.
“record metal prices are tying up working capital across the supply chain”
GST Rate at 18%
Current GST on copper is 18%, up from 5%.
“GST on a range of copper to 5% from 18%”
Potential $3.6bn Unlock
A cut could free $3.6 billion currently tied up in tax payments.
“unlock as much as three point six billion dollars of capital”
Record Copper Prices
Copper prices hit $14,700 a ton on the London Metal Exchange.
“climbing above fourteen thousand seven hundred dollars a ton”
Working Capital Pressure
Copper producers face higher working capital needs due to tax costs.
“is locking up significant working capital that could otherwise be deployed toward industry expansion”
Inventory Reduction
Cable makers cut inventories as stockpiling becomes too costly.
“inventories are now measured in days rather than weeks”
In short
Indian copper producers seek GST cut from 18% to 5% to unlock $3.6bn tied up in tax payments amid record copper prices.
