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Key sectors such as engineering, textiles, chemicals, pharmaceuticals and Food Processing and many others stand to benefit from the measure, | Photo Credit: BY ARRANGEMENT
The Centre has announced extension of benefits under the popular export promotion scheme, Remission of Duties and Taxes on Exported Products (RoDTEP), to export oriented units (EOUs), units in special economic zones (SEZs) and Advance Authorisation (AA) holders, per a government statement.
Keeping budgetary allocation in view, the extension of RoDTEP benefits to additional sectors is presently till September 30, 2024, a release issued by the Commerce Department on Friday noted.
“This decision comes in recognition of the significant contribution these sectors make to India’s exports, constituting approximately 25 per cent of our exports. Amidst global economic uncertainties and supply chain disruptions, extending RoDTEP to the uncovered sectors such as AA, EOU, and SEZ units will help the exporting community in handling the international headwinds,” it said.
The RoDTEP scheme is an important one for refunding various embedded taxes and duties on exported products. Since its inception in January 2021, the scheme has provided support amounting to ₹42,000 crore to over 10,500 export items, it added.
In the current financial year, the scheme has a budget of ₹15,070 crore with an additional increase of 10 per cent in FY25.
Under RoDTEP, announced for over 8,500 products, various Central and State duties, taxes, and levies imposed on input products, among others, are refunded to exporters. The current RoDTEP rates are in the range of 0.3 per cent to 4.3 per cent.
“The extension of the RoDTEP scheme to these sectors is aimed at enhancing India’s export competitiveness in international markets. Key sectors such as engineering, textiles, chemicals, pharmaceuticals and Food Processing and many others stand to benefit from the measure,” the note said.
Published on March 8, 2024
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