Amid faltering exports, the division of commerce on Wednesday expanded the scope of the export boosting scheme, Remission of Duties and Taxes on Exported Products (RoDTEP), to incorporate iron & metal, chemicals and prescribed drugs.
The expanded listing of things will probably be relevant for exports constructed from December 15. The outlay for the scheme is estimated to be Rs 1,000 crore, a authorities official mentioned, with out specifying whether or not or not the outgo will probably be for the present monetary 12 months.
RoDTEP will refund the embedded non-creditable central, state and native levies paid on inputs to exporters. These taxes weren’t being refunded until now.
The scheme was notified on January 1, 2021 and changed the controversial Merchandise Exports from India Scheme (MEIS) after a World Trade Organisation (WTO) ruling mentioned it violated the provisions of the worldwide commerce physique by giving export subsidies for a variety of products.
The outlay for the scheme was Rs 12,454 crore in FY22. While the charges had been notified in August final 12 months, the exclusion of those 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 assertion mentioned.
The improvement comes in the backdrop of exports going through headwinds attributable to recessionary developments recession in a number of the developed markets and provide chain disruptions triggered by Russia-Ukraine battle.
“…extension of RoDTEP to uncovered sectors like Chemicals, Pharmaceuticals & Articles of Iron & Steel is likely to enhance the export competitiveness of these sectors,” the assertion mentioned.