The government has declared an expansion of benefits under the renowned export promotion scheme, Remission of Duties and Taxes on Exported Products (RoDTEP), to encompass export-oriented units (EOUs), units in special economic zones (SEZs), and Advance Authorisation (AA) holders.
This extension of the RoDTEP scheme aims to bolster India's export competitiveness in global markets in major sectors such as engineering, textiles, chemicals, pharmaceuticals, and food processing.
With a consideration for budgetary allocation, the extension of RoDTEP benefits to additional sectors is currently set until September 30, 2024, as per a release issued by the Commerce Department on Friday.
The decision acknowledges the substantial contribution these sectors make to India’s exports, constituting approximately 25 per cent of the total exports. Amidst global economic uncertainties and supply chain disruptions, extending RoDTEP to uncovered sectors such as AA, EOU, and SEZ units will assist the exporting community in navigating international headwinds
The RoDTEP scheme plays a pivotal role in refunding various embedded taxes and duties on exported products. Since its inception in January 2021, the scheme has provided support amounting to Rs 42,000 crore to over 10,500 export items. In the current financial year, the scheme has been allocated a budget of Rs 15,070 crore, with an additional increase of 10 per cent in FY25.
Under RoDTEP, applicable to over 8,500 products, various central and state duties, taxes, and levies imposed on input products are refunded to exporters. The current RoDTEP rates range from 0.3 per cent to 4.3 per cent.
