Govt expands tax refund scheme to cover SEZs, export-oriented units
NEW DELHI : Amidst global economic uncertainties and supply chain disruptions, the government has expanded the scope of a scheme designed to make Indian exports more competitive globally by refunding various central, state and other local duties and taxes. The government has expanded the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme to support advance authorisation holders, export-oriented units, and special economic zones.
The decision is expected to benefit sectors such as engineering, textiles, chemicals, pharmaceuticals, and food processing, given that the extension of the scheme to the additional sectors is presently applicable till 30 September. Union commerce minister Piyush Goyal on Friday said that extending the RoDTEP scheme to advance authorisation holders, export-oriented units, and SEZs will help the exporting community in handling the international headwinds.
The decision comes in recognition of the significant contribution these sectors make to India’s exports, accounting for about 25% of exports, the minister said. The advance authorisation scheme allows exporters to import raw materials duty-free for manufacturing export products.
The RoDTEP scheme is meant to refund duties and taxes that are not subsumed by the goods and services tax (GST) but are incurred in the manufacturing or processing of exported products. Since its inception in January 2021, the RoDTEP Scheme has provided support amounting to ₹42,000 crore to more than 10,500 export items.
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