The government on Friday extended export benefits under the RoDTEP scheme to companies in the special economic zones (SEZs) and export-oriented units (EOUs).
The commerce ministry said that amid global economic uncertainties and supply chain disruptions, extending RoDTEP benefits to the uncovered sectors like AA (advance authorisation), EOUs, and SEZ units will help the exporting community in handling the international headwinds.
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“The government has announced the extension of the RoDTEP scheme support to additional export sectors i.e. Advance Authorisation holders, Export Oriented Units and Special Economic Zones export units,” the ministry said.
This decision comes in recognition of the significant contribution these sectors make to India’s exports, constituting about 25 per cent of the total shipment The government, in August 2021, announced the rates of tax refunds under the export promotion scheme — Remission of Duties and Taxes on Exported Products (RoDTEP) — for 8,555 products like marine goods, yarn and dairy items.
As SEZs and EOUs were kept out of the scheme in the list notified at that time. The industry was demanding to include them in the scheme.
Under RoDTEP, 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.
Since its inception in January 2021, the scheme has already provided support amounting to Rs 42,000 crore to more than 10,500 export items, the ministry said.
“In the current financial year, the scheme has a budget of Rs 15,070 crore with an additional increase of 10 per cent in 2024-25,” it said adding that “keeping budgetary allocation in view, the extension of the scheme to additional sectors is presently till September 30, 2024”.
The extension is aimed at enhancing India’s export competitiveness in international markets.
Key sectors, such as engineering, textiles, chemicals, pharmaceuticals and food processing, stand to benefit from the measure.
The primary goal of RoDTEP is to refund taxes and duties that are not rebated under any other scheme. This includes various central, state, and local duties/taxes/ levies that are incurred in the process of manufacturing and distribution of exported products but are not refunded through schemes like GST (Goods and Services Tax) or Duty Drawback scheme. source business standard.com
