New Delhi, Aug. 13 -- Summary India's GST system is hindering the circular economy by taxing recycled materials at the same rate as virgin ones, discouraging sustainable practices.

This policy failure forces recycling businesses into the informal sector, costing the government significant revenue and exploiting workers.

Reforming GST rates could boost the economy and improve conditions for millions of waste workers.

India's tax system is undermining its own environmental goals. Under the current Goods and Services Tax (GST) system, a company that turns discarded plastic bottles into new products pays the same tax rate as one that uses virgin plastic. This serious policy failure affects all recycled materials-metal, e-waste, and several...