Amid global economic uncertainties, the industry has urged the government to extend key export-boosting scheme Remission of Duties and Taxes on Exported Products (RoDTEP) for export-oriented units (EOUs) and special economic zones (SEZs) till September-end.
Currently, the RoDTEP scheme for exports from the domestic tariff area (DTA), or the domestic market, is in place till September 30 this year. However, in the case of SEZs,
EOUs and advance authorisation (AA) holders, the scheme expired on December 31 last year.
The RoDTEP scheme refunds the embedded non-creditable central, state and local levies paid on inputs to exporters to boost India’s exports. The scheme came into effect in 2021, but was extended to additional export sectors — SEZs, EOUs, and AA holders — only from March 11, 2024 to “help the exporting community in handling the international headwinds”.
In a letter to expenditure and commerce secretaries, the Export Promotion Council for EOUs and SEZs (EPCES) has said that there is “no justification” for denying the RoDTEP benefits to one set of exporters — EOUs, SEZs, and AA holders.
The EPCES also pointed out that in case of a budget constraint, the RoDTEP scheme should be limited to limited sectors and products only, instead of a small set of exporters being put to disadvantage. The budget requirement to cover EOUs and SEZs under RoDTEP is limited since exports from EOUs and SEZs constitute about 15 per cent of total merchandise exports.
The Council has also suggested that in case of budget constraint, all exporters be covered only till March 31.
As much as Rs 16,575 crore has been allocated to the RoDTEP scheme under the Union Budget 2014-25.
Source Name : Buisness Standard