Tobacco farmers ask govt to include sector under duty refund scheme
In a meeting with Commerce and Industry Minister Piyush Goyal in Hyderabad on June 29, traders submitted that tobacco exporters are not covered under any scheme that provides export incentives.
Tobacco exporters have asked the government to extend the duty refund scheme RoDTEP to the sector to boost outbound shipments.
In a meeting with Commerce and Industry Minister Piyush Goyal in Hyderabad on June 29, traders submitted that tobacco exporters are not covered under any scheme that provides export incentives.
They "requested to extend support to tobacco exporters by including them under the RoDTEP scheme," the ministry said in a statement.
They also requested the government help in curtailing the unauthorized production and use of chewing tobacco in India due to which there is a huge loss to the government exchequer, it added.
They also informed that there is an increase in illicit cigarette sales.
The scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) provides for 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.
In the meeting, Goyal informed that the export value of un-manufactured tobacco and tobacco products surpassed all the records at Rs 12,005.80 crore (USD 1.5 billion).
The participants also flagged the problems being faced by tobacco farmers in tobacco production such as shortage of labour, lack of assistance for farm mechanization, higher cost of sulphate of potash (SOP) fertilizer, penalty on excess tobacco production, increased fuel cost for tobacco barns and sought necessary technological/financial assistance from the government.
He has assured to address the issues of the tobacco farmers and industry.
Goyal said that all efforts will be made to waive the penalty on excess tobacco produced by the farmers this year. He added that the period of validity of registration will be increased from 1 year to a period of 3 years.
This will be available for all tobacco farmers in the upcoming season.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Tamil Nadu Weather Alert: Chennai may receive heavy rains; IMD issues yellow & orange alerts in these districts
Fundamental picks by brokerage: These 3 largecap, 2 midcap stocks can give up to 28% return - Check targets
SIP vs PPF: How much corpus you can build in 15 years by investing Rs 1.5 lakh per year? Understand through calculations
SIP+SWP: Rs 10,000 monthly SIP for 20 years, Rs 25 lakh lump sum investment, then Rs 2.15 lakh monthly income for 25 years; see expert calculations
Top 7 Mutual Funds With Highest Returns in 10 Years: Rs 10 lakh investment in No 1 scheme has turned into Rs 79,46,160 in 10 years
SBI Senior Citizen Latest FD Rates: What senior citizens can get on Rs 7 lakh, Rs 14 lakh, and Rs 21 lakh investments in Amrit Vrishti, 1-, 3-, and 5-year fixed deposits
06:55 PM IST