On 26 September, the Central Government extended support for exports under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme till 30 June 2024. The RoDTEP support was notified till 30 September 2023, but now the government has extended it till 30 June 2024 at the same rates as the existing export items.
The decision to extend the RoDTEP scheme comes at a time when the country’s exports face global headwinds due to the slowdown in various major economies of the world.
The extension will help the exporting community negotiate export contracts in the international environment on better terms, with the government emphasising that the scheme is WTO-compatible and implemented in an end-to-end IT environment.
The government introduced the RoDTEP Scheme as a duty remission scheme on exports and implemented it from 1 January 2021. It operates under a budgetary framework, and a budget of Rs.15,070 crore has been allocated for FY 23-24.
The RoDTEP scheme provides a mechanism for reimbursement of duties, taxes and levies, currently not being refunded under other mechanisms at the central, state and local levels but incurred by the export entities in the manufacture and distribution process of exported products.
The RoDTEP Committee has been constituted again in the Department of Revenue to recommend and review the ceiling rates for different export sectors under the RoDTEP Scheme. The Committee held its first interaction on 26 September 2023 with the Export Promotion Councils (EPCs) or Chamber of Commerce and discussed the methodology and other issues relating to the RoDTEP Scheme and its implementation.
The EPCs emphasised the need to enhance the RoDTEP budget allocation and for higher rates to be available to all export items to help them get greater market access abroad.
Between 1 January 2021 and 31 March 2023, Rs.27,018 crore was spent towards this scheme. During the current financial year, around Rs.15,070 crore has been allocated for supporting 10,610 product lines.
For any clarifications/feedback on the topic, please contact the writer at mayashree.acharya@cleartax.in
I am an Advocate by profession. I interpret laws and put them in simple words. I love to explore and try new things in life.
