India Lead Zinc Development Association (ILZDA) has urged the Central government to urgently notify a 5 per cent remission rate under the RoDTEP (Remission of Duties or Taxes on Export Products) Scheme for zinc exports to help enhance competitiveness in the global market.
“For the last few months, the domestic demand for zinc has been somewhat depressed due to reduced fund inflow into infrastructure, declined automobile production, etc. As a result, since mid-April the Indian zinc industry has been compelled to export as much zinc as possible,” the industry group said in a letter to Minister for Commerce & Industry Piyush Goyal on May 22.
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The association pointed out that Korean exports into India had risen with the advantage of zero duty under the Comprehensive Economic Partnership Agreement, also forcing the domestic industry to export.
“The domestic industry faces a tax and duty incidence of 17-24 per cent of FOB value for which representation has been made to the RoDTEP Committee in September,” it added.
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“We, therefore, urge the Commerce, Industry, and Railways Ministries to take up this matter with the Ministry of Finance for ensuring adequate funds to support the Zinc and Lead industry at a minimum 5 per cent RoDTEP rate for enhancing the competitiveness of our industry in the global market,” the letter said. The industry has the potential to double its exports over the next 2-3 years, it added.