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October 10, 2022

Steel, Pharma And Chemical Exports May Witness Duty Refund

Rahul Bhagat Economic Trends, Financial Compliance, Financial Leadership, Financial Management, Financial Reporting, Financial Strategy chemicals, duty refund, exports, ministry of commmerce, Ministry of finance, pharma, RoDTEP, steel

The government has successfully been able to refund around Rs 13,000 crore against the duties and taxes under RoDTEP scheme

India may consider extending a key export scheme to pharmaceuticals, chemicals and steel products. Measures to support exports affected by falling demand in advanced economies are being examined crucially.

Finance ministry and the ministry of commerce and industry have started meetings and discussions over considering these sectors within the Refund of Duties and Taxes on Exported Products (RoDTEP) scheme.

From 1 January 2021, the input duty remission scheme for exporters was implemented however these sectors were not made part of it.

According to an official, after discussions with the finance ministry, a cabinet note could be taken further. The scheme employment-generating sectors includes marine, agriculture, leather and gems and jewellery.

The government has successfully been able to refund around Rs 13,000 crore against the duties and taxes under RoDTEP scheme. The refunds heads include value added tax on fuel used in transportation, mandi tax and duty on electricity used during manufacturing.

In order to expand the scheme’s coverage, the commerce department will require funds amounting Rs 2,000 crore more, according to the official.