Exporters Urge Reconsideration Amid RoDTEP Rate Cuts
The government halved RoDTEP scheme duty benefits, sparking exporters' calls for a policy review. This scheme, aiding exporters by refunding unremitted taxes and levies, now offers only 50% of previous rates. Exporters face global challenges amidst limited support, as trade deficits reach three-month highs.
- Country:
- India
The government has slashed the benefits under the RoDTEP scheme for exporters, cutting the rate by half, a decision met with calls for reconsideration from the exporting community.
Launched in 2021, the RoDTEP scheme aimed to refund taxes, duties, and levies incurred by exporters, which aren't covered under other existing mechanisms. However, in an unexpected move, the Directorate General of Foreign Trade announced that the rates will be limited to 50% of the currently prevailing rates, effective immediately.
This decision comes at a difficult time as Indian exports encounter global challenges such as decreasing demand, uncertainty, and protectionist policies. The Federation of Indian Export Organisations' President, S C Ralhan, expressed the need for the government to reassess the situation, highlighting the widening trade deficit that reached a three-month high in January.
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