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Amid faltering exports, the department of commerce on Wednesday expanded the scope of the export boosting scheme, Remission of Duties and Taxes on Exported Products (RoDTEP), to include iron & steel, chemicals and pharmaceuticals.
The expanded list of items will be applicable for exports made from December 15. The outlay for the scheme is estimated to be Rs 1,000 crore, a government official said, without specifying whether or not the outgo will be for the current financial year.
RoDTEP will refund the embedded non-creditable central, state and local levies paid on inputs to exporters. These taxes were not being refunded till now.
The scheme was notified on January 1, 2021 and replaced the controversial Merchandise Exports from India Scheme (MEIS) after a World Trade Organisation (WTO) ruling said it violated the provisions of the global trade body by giving export subsidies for a wide range of goods.
The outlay for the scheme was Rs 12,454 crore in FY22. While the rates were notified in August last year, the exclusion of these sectors from the ambit of the scheme had irked some exporters.
“This was a long standing demand of the industry which has been accepted and will go a long way in boosting our exports & competitiveness in the global markets, generate employment and contribute to the overall economy. The expanded list of eligible export items under Appendix 4R will increase from 8,731 export items (8 digit tariff lines) to 10,342 export items (8 digit tariff lines),” an official statement said.
The development comes in the backdrop of exports facing headwinds due to recessionary trends recession in some of the developed markets and supply chain disruptions triggered by Russia-Ukraine conflict.
“…extension of RoDTEP to uncovered sectors like Chemicals, Pharmaceuticals & Articles of Iron & Steel is likely to enhance the export competitiveness of these sectors,” the statement said.
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