Comments
Exporters of a range of items may get higher benefits under the popular incentive scheme, Remission of Duties and Taxes on Exported Products (RoDTEP), if they can submit enough data to the government establishing that their input taxes are higher than what is remitted to them, an official has said.
“When the RoDTEP rates were announced last year, there were complaints that the remission rates for several items, ranging from electronics to chemicals, were lower than the input taxes actually paid by exporters. That was due to inadequate data submitted by them. The exporters are now being given a second chance to submit the required data,” the official tracking the matter told businessline.
The RoDTEP scheme, announced in January 2021, refunds embedded duties and taxes, such as VAT on fuel used in transportation, mandi tax and duty on electricity used during manufacturing of the exported items, that are not rebated under other schemes. It replaced the WTO-incompatible MEIS scheme. Remission rates under RoDTEP have been meticulously calculated with transparency by a committee headed by GK Pillai, former Secretary of Home and Commerce, and has so far passed muster at the WTO.
Time till Nov 30
“Due to absence of data and evidence for several products, the Pillai Committee applied uniform rates for certain HS codes (items). So, you will find a whole list of items with RoDTEP rates of say 0.8 per cent. Many such items may actually be entitled to higher rates if the industry can provide adequate date,” the official said. The current RoDTEP rates, mostly in the range of 0.3 per cent to 4.3 per cent, are much lower than the rates under the MEIS scheme.
The recently re-constituted RoDTEP Committee will now look at the fresh data that is furnished by the industry and will re-fix the rates wherever there is a scope, the official added. The industry has time till November 30 to give its inputs.
The RoDTEP scheme operates under a budgetary framework and for FY 23-24, a budget of ₹15,070 crores is available to support 10,610 items (HS lines) at the 8 digit level.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.