The government on Monday halved the rate of duty benefits under the export support scheme, RoDTEP, prompting the exporter community to seek a reconsideration of the decision.
The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, launched in 2021, provides for a refund of taxes, duties and levies that are incurred by exporters in the process of manufacturing and distribution of goods, and are not being reimbursed under any other mechanism at the Centre, state or local level.
With immediate effect, the Directorate General of Foreign Trade (DGFT) said, the applicable RoDTEP rates would be limited to 50 per cent of the existing rates. Refunds under the scheme range from 0.3 per cent to 3.9 per cent.
“RoDTEP benefits shall be restricted to 50 per cent of the notified rates and value caps with immediate effect,” the DGFT said in a notification.
Commenting on the move, Federation of Indian Export Organisations (FIEO) President SC Ralhan said the reduction of rates and the cut in value caps by 50 per cent came at a particularly challenging time when Indian exports are already facing significant global headwinds, including slowing demand, increasing uncertainty and rising protectionism. “We request the government to reconsider the decision,” he said.
The country's exports rose marginally by 0.61 per cent to US $36.56 billion in January, while trade deficit widened to a three-month high of US $34.68 billion, government data showed on Monday.
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