Indian copper producers are seeking domestic tax relief, and they say record metal prices have caused a large share of working capital throughout the supply chain. Rohit Patak, president of the Indian Primary Copper Producers Association, said on Wednesday that the association is in negotiations with the government to reduce the goods and services tax on a range of copper products from 18% to 5%. He said that this policy adjustment is expected to release up to 3.6 billion US dollars of funds currently occupied by tax payments. This year, the price of copper has repeatedly reached record highs. This month, the price of copper on the London Metal Exchange has climbed to more than $14,700 per ton. This sharp rise in prices has increased cost pressure in India. India has been heavily dependent on copper imports since the closure of the Street smelter under Vedanta Limited in 2018.

Indian copper producers are seeking domestic tax relief, and they say record metal prices have caused a large share of working capital throughout the supply chain. Rohit Patak, president of the Indian Primary Copper Producers Association, said on Wednesday that the association is in negotiations with the government to reduce the goods and services tax on a range of copper products from 18% to 5%. He said that this policy adjustment is expected to release up to 3.6 billion US dollars of funds currently occupied by tax payments. This year, the price of copper has repeatedly reached record highs. This month, the price of copper on the London Metal Exchange has climbed to more than $14,700 per ton. This sharp rise in prices has increased cost pressure in India. India has been heavily dependent on copper imports since the closure of the Street smelter under Vedanta Limited in 2018.