Indian Economy News

The government extends support under the Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) till June 30th, 2024

The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme's assistance has been extended by the government from September 30, 2023, to June 30, 2024. According to the Commerce and Industry Ministry, the action will assist the exporting community in negotiating better terms for export contracts in the current international environment.

The programme provides a method for reimbursement of taxes, tariffs, and levies that are currently not returned under any other mechanism at the central, state, and municipal levels, but which are incurred by export entities throughout the manufacturing and distribution of exported items.

According to a statement from the ministry, "The scheme is World Trade Organisation (WTO) compatible and is being implemented in an end-to-end IT environment". The RoDTEP Scheme was implemented on January 1, 2021, and was introduced as a duty remission scheme on exports.

According to the announcement, the RoDTEP Committee has been reconstituted in the Department of Revenue in accordance with the scheme structure to review and suggest the ceiling rates under the RoDTEP Scheme for various export industries. The committee met for the first time recently, with export promotion councils and industry chambers to examine the methodology and other aspects of the scheme's execution.

According to the statement, "The Export Promotion Councils (EPCs) in their observations emphasised the need for strengthening the RoDTEP budget allocation and for higher rates to be made available to all export items to help them secure greater market access abroad".

The scheme has been extended for a period of 27 months, until March 31, 2023, at a cost of Rs. 27,018 crore (US$ 3.23 billion). The RoDTEP scheme runs within a budgetary framework, with a budget of Rs. 15,070 crore (US$ 1.80 billion) available for 2023-24 to support 10,610 goods (HS lines at the 8-digit level).

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.