Export duty refund program likely to be extended to steel, pharma, chemicals sectors

10 Oct 2022 , 08:46 AM

In order to assist exports that have been severely impacted by declining demand in advanced nations, India may be considering expanding a crucial export programme to include pharmaceuticals, chemicals, and steel items.

The Refund of Duties and Taxes on Exported Products, or RoDTEP programme, has begun to be discussed by the ministries of commerce, industry, and finance.

These industries were not included in the exporters’ input duty remission programme, which went into effect on January 1, 2021. According to a government official with knowledge of the proceedings, who talked to ET, “a proposal to include these industries under RoDTEP is under discussion.”

After consultation with the finance ministry, a cabinet note might be shifted, the official said. The programme provides a 0.3—4.3% incentive to 8,555 products across a variety of industries that create jobs, including marine, agricultural, leather, gems & jewellery, and maritime.

Under RoDTEP, the government has allocated almost Rs13,000 crore for the reimbursement of duties and taxes, including the value-added tax on transportation fuel, the mandi tax, and the duty on energy used in manufacturing.

According to the official, the commerce department will require an additional Rs2,000 crore to broaden the scope of the scheme.

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