The government has reduced duty benefits available to exporters under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme by 50 per cent with immediate effect, prompting industry bodies to urge a review of the decision, PTI reported.
The Directorate General of Foreign Trade (DGFT) said the applicable RoDTEP rates will now be capped at half of the existing notified rates and value limits.
“RoDTEP benefits shall be restricted to 50 per cent of the notified rates and value caps with immediate effect,” the DGFT said in a notification.
Launched in 2021, the RoDTEP scheme provides refunds of taxes, duties and levies incurred during the manufacturing and distribution of exported goods that are not reimbursed under any other central, state or local mechanism.
Refund benefits under the scheme currently range between 0.3 per cent and 3.9 per cent.
Reacting to the move, Federation of Indian Export Organisations (FIEO) President S C Ralhan said the reduction comes at a difficult time for exporters facing global economic pressures.
“The reduction of rates and the cut in value caps by 50 per cent came at a particularly challenging time when Indian exports are already facing significant global headwinds, including slowing demand, increasing uncertainty and rising protectionism. We request the government to reconsider the decision,” he said.
Government data released showed that the country’s exports rose marginally by 0.61 per cent to $36.56 billion in January, while the trade deficit widened to a three-month high of $34.68 billion.
