RoDTEP Scheme Under Review As Exporters Seek Higher Refund Rates

ENA Sectors 2024-10-22 14:37:17 New Delhi, Oct 22 (KNN) The Indian government has initiated discussions with exporters regarding recent modifications to the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, soliciting detailed data-driven proposals for rate revisions. This development follows widespread concern over reduced input duty refund rates under the program, reported Businessline. Officials from the Finance Ministry and Directorate General of Foreign Trade are particularly focusing on sectors most affected by the rate adjustments, including chemicals, plastics, textiles, and engineering goods. The RoDTEP committee is scheduled to review industry submissions after Diwali. The RoDTEP scheme, implemented in January 2021 as a replacement for the WTO-non-compliant MEIS program, provides refunds for embedded taxes such as VAT on transportation fuel, mandi tax, and electricity duty used in export production. The scheme's recent extension through September 2025 for domestic tariff area units came with revised refund rates, dropping to 0.3-3.9 percent from the previous 0.5-4.3 percent range. Industry representatives argue that as a zero-rated scheme, RoDTEP should operate without budgetary constraints, maintaining that exporters should receive full reimbursement for taxes already paid. Export promotion councils are currently consolidating member input to present comprehensive cases for rate increases. The RoDTEP committee will evaluate new industry data to determine potential rate adjustments. The scheme supported USD 450 billion in exports during FY23 with an expenditure of Rs 13,020 crore, following FY22's outlay of Rs 12,100 crore for USD 421 billion in exports. (KNN Bureau) 39665 https://knnindia.co.in/news/newsdetails/sectors/rodtep-scheme-under-review-as-exporters-seek-higher-refund-rates 2024-10-22 14:37:17 knnindia.co.in RoDTEP Scheme Under Review As Exporters Seek Higher Refund Rates