Commerce dept mulls options for key export schemes
incentive schemes even as it weighs various options such as lowering the sops if they’re not allocated more funds.
The ministry has moved a note for the approval of the Expenditure Finance Committee (EFC) to extend to the Interest Equalisation scheme by five years, which is available for small businesses and products falling under 401 tariff codes, till August 31. The total outlay of the scheme is capped at Rs 750 crore.
Separately, it has also sought that duty remission benefits granted to exporters, under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme are extended beyond September.
The extension of the schemes is crucial as muted global demand, geopolitical challenges and a drop in crude, commodities and metal prices dragged India’s goods export growth to an eight-month low in July, with outbound shipments contracting 1.47% to $33.98 billion.
“Our review suggests that if exports continue at the same pace, then we might just manage with the existing RoDTEP outlay,” said an official.
However, if exports grow at a faster pace, the ministry expects to use the residual outlay of around Rs 800 crore of a third scheme which is the Rebate of State and Central Taxes and Levies (RoSCTL) scheme for apparel, garments and made-ups.
RoDTEP and RoSCTL are e-scrips issued by customs in in respect of remission of embedded local duties/ taxes/ levies in exported goods.
“We forecast some savings under RoSCTL because textile exports haven’t grown as much and can be accommodated in RoDTEP,” the official
