Exporters get WTO compatible rates
Welcoming the announcement of the Remission of Duties and Taxes on Exported Products (RoDTEP) rates for the merchandise sector, FIEO President Dr A Sakthivel called for coverage of various other sectors such as Pharma, Organic & Inorganic chemicals, Article of Iron & Steel and Iron & Steel immediately and backdating to 1 January 2021.
“We hope that in future these rates will be revised to reflect the actual duty and taxes suffered by the industry and more and more sectors would be covered along with exports made under Duty Exemption Schemes, Export-Oriented Units (EOUs), Special Economic Zones (SEZs), bonded warehouses etc. who all suffer the hidden and unutilized duties,” PHD Chamber of Commerce and Industry President Sanjay Aggarwal elaborated in joining the FIEO President call on 17 Aug 2021.
The much-awaited rates will help in easing the liquidity of the exporters, ensuring predictability and stability thus helping competitiveness of exports over a long-time horizon, added Dr Sakthivel.
RoDTEP rates, which provides zero rebating of exports, are WTO compatible and thus will continue for long time until all the products and services are brought within the ambit of GST and embedded incidence is completely neutralized.
“The RoDTEP coupled with GST refund and Duty Drawback ensure that our export products do not contain any incidence of taxes and duties,” he added.
Explaining about the low rates for many sectors, Dr Sakthivel said that since the rates are fixed on the basis of the data furnished by the industry, which was also affected due to the pandemic, the rates may be reviewed if more comprehensive and updated data is furnished by the industry. Moreover, there is a provision for an annual review of the rates factoring the changes in the taxes and duties in respect of parameters based on which such rates are fixed.
RoDTEP announcement will encourage exporters to increase their exports, thereby providing a push to the country’s overall economic growth trajectory, said Aggarwal.
Furthermore, it will compensate for inefficiencies in infrastructure and the costs associated with exporting products manufactured in India, with a special emphasis on those that are of export interest to India and have the potential to generate employment and boost India’s export competitiveness in the global markets, he said.
It is inspiring to note that the notification for almost 8,555 products with scheme rates ranging from 0.5% to 4.3%.
“Overall, the Government appears to have done a fair job of allocating the benefit to a large sector of industry given the budgetary constraint,” added Aggarwal. #exports #taxes #economy #investment #manufacturing #industries /fiinews.com
