Export Remission Scheme May Continue Beyond September

By: Admin | September 30, 2024 | Categories: Export Import | 4 Min Read

Amid a slowdown in India’s goods exports, the government has decided to extend the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, which was initially set to expire on September 30, 2024. Officials have confirmed that the scheme will now be reviewed in December, with a decision made based on the economic outlook at that time.

The RoDTEP scheme refunds exporters for taxes and duties that aren’t covered by other refund mechanisms, such as GST or duty drawback. These include central, state, and local levies incurred during the manufacturing and distribution process. The current RoDTEP benefit rates range from 0.3% to 4.3%, and the government has allocated ₹16,575 crore for the scheme in FY 2024-25.

If export volumes rise more than expected, officials have suggested using around ₹800 crore from the Rebate of State and Central Taxes and Levies (RoSCTL) scheme, which targets apparel, garments, and made-ups.

Meanwhile, the future of the interest equalisation scheme for pre- and post-shipment rupee export credit is still under discussion between the commerce and finance ministries. Exporters have called for its extension, as India’s goods exports contracted by 9.3% in August 2024. A decision on this scheme is expected soon, with the Expenditure Finance Committee reviewing a five-year extension proposal.

Stay tuned for updates on these critical export support measures.

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