Schedule a Call Back
Exporters call for enhanced benefits and expansion of RoDTEP Scheme
Industry News- Sep 29,23
The Federation of Indian Export Organisations (FIEO), representing exporters, highlights disparities in refund rates. For instance, while aluminum bars and rods receive a RoDTEP refund rate of 2.2%, their value-added counterparts only get 1.2%.
Exporters are urging the government to enhance benefits for value-added goods under the flagship Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. Currently, the scheme offers higher refund rates for goods with lower value addition, contradicting the government's objective of promoting exports with higher value addition.
The Federation of Indian Export Organisations (FIEO), representing exporters, highlights disparities in refund rates. For instance, while aluminum bars and rods receive a RoDTEP refund rate of 2.2%, their value-added counterparts only get 1.2%. FIEO has submitted a request to the commerce department, urging the inclusion of additional criteria to adequately reward value-added exports. The FIEO emphasises that in some cases, products with a 100% value addition receive lower RoDTEP entitlement compared to products with lesser value addition.
The RoDTEP scheme aims to refund non-creditable central, state, and local levies incurred by exporters during the manufacturing and distribution of exported products. It was implemented on January 1, 2021, replacing the controversial Merchandise Exports from India Scheme (MEIS) following a World Trade Organisation (WTO) ruling against MEIS's export subsidies.
FIEO emphasises that the RoDTEP scheme, which neutralises duties similar to duty drawback, should have no end date. This scheme, along with duty drawback, duty exemption, and goods and services tax refund mechanisms, ensures zero-rating for Indian exports and aligns with WTO regulations under the Agreement on Subsidy and Countervailing Measures (ASCM).
Additionally, exporters are advocating for the RoDTEP scheme's extension to all export sectors, including export-oriented units, special economic zones, and entities with unrebated tax incidences.
Exporters
RoDTEP Scheme
Value-added Goods
FIEO
Government Benefits
Export Subsidies
WTO Ruling
Duty Drawback
Special Economic Zones
Tax Refund Mechanism
Related Stories
Policy Regulation
Interest subsidy scheme for exporters extended 2 months for MSME sector
The two-month continuation of the scheme for the MSME sector comes with an outlay cap of Rs 7.5 billion, while all other terms and conditions remain the same.
Read moreOther Industrial Products
Will exports turn positive amid Red Sea crisis?
Armed conflict in the Red Sea is affecting the global trade as the movement of goods has been hindered by the conflict since November last year
Read moreElectrical & Electronics
GTRI urges govt to maintain import duties on smartphone components
The think tank suggested that maintaining the current import tariffs, ranging from 7.5 to 10% on imported smartphone parts, is essential for balancing industry growth and ensuring long-term developm..
Read moreRelated Products
Heavy Industrial Ovens
INDUSTRIAL SUPPLIES
Hansa Enterprises offers a wide range of heavy industrial ovens.
High Quality Industrial Ovens
INDUSTRIAL SUPPLIES
Hansa Enterprises offers a wide range of high quality industrial ovens. Read more
Hydro Extractor
INDUSTRIAL SUPPLIES
Guruson International offers a wide range of cone hydro extractor. Read more
latest News
Subscribe to iNoW
For Industry News on WhatsApp, Give a Miss Call on: +91 84228 74016
