The Indian Government has extended its RoDTEP scheme by nine months until June 30, 2024. The scheme offers duty and tax remissions for 18 export items like sarees and lungis. A reconstituted RoDTEP Committee will review ceiling rates. Since its 2021 launch, the scheme has disbursed Rs. 27,018 cr, with a budget of Rs. 15,070 cr set for 2023-24.
The Indian Government has extended Remission of Duties and Taxes on Export Products (RoDTEP) scheme till June 30, 2024. The scheme, which provides duty and taxes remission for exports of 18 items including saree and lungi, was to end on September 30, 2023. RoDTEP rates on export items will continue to remain the same for the extended nine-month period.
The extension of RoDTEP will help the exporting community to negotiate export contracts in the present international environment on better terms, the Ministry of commerce and industry said in a statement. The scheme is WTO compatible and is being implemented in an end-to-end IT environment.
In another development, in line with the scheme framework, the RoDTEP Committee has again been constituted in the Department of Revenue to review and recommend the ceiling rates under the RoDTEP for different export sectors. The Committee held its first interaction recently in New Delhi with the Export Promotion Councils (EPCs) and Chambers of Commerce and discussed the methodology and other issues relating to the scheme and its implementation. The EPCs in their observations emphasised the need for enhancing the RoDTEP budget allocation and for higher rates to be made available to all export items to help exportes secure greater market access abroad.
The RoDTEP scheme was introduced by the Government as a duty remission scheme on exports and is being implemented since January 2021. The scheme provides a mechanism for reimbursement of taxes, duties and levies, which are currently not being refunded under any other mechanism, at the Central, state and local levels, but which are incurred by the export entities in the process of manufacture and distribution of exported products.
Under the scheme, a support of Rs. 27,018 cr was extended for the 27 months period till March 31, 2023. The RoDTEP scheme operates under a budgetary framework. For fiscal 2023-24, a budget of Rs. 15,070 cr is available to support 10,610 HS lines at the 8-digit level.
