Govt extends export benefits under RoDTEP scheme till June 2024

The government on Tuesday extended export benefits under the RoDTEP scheme for one more year till June 2024, according to an official release.

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.

The scheme is operational since September 2021. "The RoDTEP scheme is extended for exports made from October 1, 2023, and shall be applicable till June 30, 2024," the Directorate General of Foreign Trade said in a notification.

Under the scheme, support of Rs 27,018 crore has been extended till March 31, 2023, so far. It operates under a budgetary framework and an amount of Rs 15,070 crore is available to support 10,610 products for 2023-24. It will help the exporting community to negotiate export contracts in the present international environment on better terms.

The RoDTEP Committee has again been constituted in the Department of Revenue to review and recommend the ceiling rates under the RoDTEP Scheme for different export sectors, it said.

The Committee held its first interaction today here with the EPCs/Chamber of Commerce and discussed the methodology and other issues relating to the Scheme and its implementation.

The EPCs (export promotion councils) in their observations emphasized the need for enhancing the RoDTEP budget allocation and for higher rates to be made available to all export items to help them secure greater market access abroad.

This scheme is a replacement for the Merchandise Exports from India Scheme (MEIS) which ended last year. At present, over 10,342 export items get the RoDTEP benefits. The incentive is paid in the form of transferable duty credit scrip which can be used to pay import duties or sold in the market by exporters.

Catch the latest stock market updates here. For all other news related to business, politics, tech, sports, and auto, visit Zeebiz.com.