Aluminium producers' association AAI has sought government's intervention for notification of rates for aluminium special economic zones and export oriented units (EOUs) under the RoDTEP scheme. The Aluminium Association of India (AAI) in its representation to the government has suggested that this would help boost the country's exports and encourage a favourable business landscape for domestic industries to develop.
The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme provides for refund of taxes, duties and levies that are incurred by exporters in the process of manufacturing and distribution of goods and are not being reimbursed under any other mechanism at the centre, state or local level.
The scheme is operational since September 2021.
"While RoDTEP rates for aluminium smelters located in DTAs (domestic tariff areas) have been notified, the rate declaration for SEZs and EOUs is still pending," it said.
The RoDTEP scheme was announced in 2019 as a replacement to the Merchandise Exports from India scheme (MEIS). With over USD 20 billion invested, the nation is today the second largest aluminium producer in the world, with a production capacity of 4.1 million tonne per annum.
AAI pointed out that while RoDTEP rates for aluminium products manufactured in DTAs have been notified, rates for those manufactured within SEZs and EOUs are yet to be notified.
Special economic zones (SEZs) and EOUs cumulatively represent the source of over 30 per cent of all aluminium exports from India. This indicates that a significant part of the domestic aluminium industry is yet to benefit from the comprehensive advantages offered by RoDTEP.
Meanwhile, industry body Assocham has also asked the government for urgent supportive measures under RoDTEP for the aluminium industry -- SEZs and EOUs -- to boost exports and enhance contribution to forex earnings.
"...we earnestly request your kind intervention for the RoDTEP rate declaration for SEZs and EOUs and the same to be made effective from January 1, 2021 i.e. from the date of declaration of the RoDTEP scheme," the industry body said.
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Source Name :Economic Times