The Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) support has been extended till June 20, 2024 from earlier September 30, 2023 deadline, at the same rates to the existing export items, a statement issued by the Commerce Ministry on September 26 said.
The extension comes at a time when the country’s exports face global headwinds due to slowdown in several major economies of the world.
“This will help our exporting community to negotiate export contracts in the present international environment on better terms” the statement further added.
The RoDTEP Scheme was introduced by the Government as a duty remission scheme on exports and is being implemented from 1st 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 level, but which are incurred by the export entities in the process of manufacture and distribution of exported products. It operates under a budgetary framework and for FY 23-24, a budget of Rs 15,070 crore has been allocated.
Further, as per the statement, the RoDTEP Committee has again been constituted in the Department of Revenue to review and recommend the ceiling rates under the RoDTEP Scheme for different export sectors.
The Committee held its first interaction today with the Export Promotion Councils (EPCs)/ Chamber of Commerce and discussed the methodology and other issues relating to the Scheme and its implementation. “The EPCs in their observations emphasized the need for enhancing 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 statement by the ministry has added.