The Commerce Department is holding discussions with the Finance Ministry to secure a longer-term extension of two key export support schemes — the Remission of Duties and Taxes on Exported Products (RoDTEP) and the Rebate of State and Central Taxes and Levies (RoSCTL). The schemes, recently extended for three months, are due to expire on December 31, 2026.
According to sources, the Commerce Department is seeking a five-year extension, arguing that the schemes reimburse exporters for embedded taxes rather than provide incentives. However, the Finance Ministry remains unconvinced about their effectiveness in boosting exports.
RoDTEP refunds eligible Central, State and local duties and taxes on exported products that are not reimbursed through other mechanisms. The scheme is particularly important for MSME exporters and labour-intensive industries. RoSCTL follows a similar principle but specifically covers exports of apparel, garments and made-ups.
The Commerce Department is pushing for a longer extension, citing the schemes’ importance in supporting Indian exporters amid geopolitical uncertainties and disruptions to global trade.