The Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme, that returns taxes already paid during production, including state taxes on fuel, electricity duties and mandi charges, that are not otherwise refunded, shall continue unchanged with the existing rates and value caps till December 31, 2026
Chennai: The government has extended the RoDTEP scheme for exports for three more months till December. However, industry needs a longer extension of the refund scheme to ensure policy certainty.
The Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme, that returns taxes already paid during production, including state taxes on fuel, electricity duties and mandi charges, that are not otherwise refunded, shall continue unchanged with the existing rates and value caps till December 31, 2026.
The scheme will be available for exports made by Domestic Tariff Area (DTA) units, Advance Authorisation (AA) holders, Special Economic Zone (SEZ) units and Export Oriented Units (EOUs).
Such short extensions defeat the scheme’s core purpose: exporters finalise orders months before shipment and cannot factor tax refunds into their pricing without knowing whether the scheme will continue, said GTRI.
“The government should announce a five-year extension to give exporters certainty, help them price orders competitively and avoid losing contracts because of policy uncertainty. This certainty is especially important in today’s difficult export environment, when exporters need every cost advantage to retain business,” GTRI added.
