New Delhi, February 23 The government on Monday halved the rate of duty benefits under the export support scheme, RoDTEP, prompting the exporting community to seek a reconsideration of the decision.
The Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme, launched in 2021, provides for a refund of taxes, duties, and levies that are incurred by exporters in the manufacturing and distribution of goods, and are not being reimbursed under any other mechanism at the Centre, state, or local level.
With immediate effect, the Directorate General of Foreign Trade (DGFT) said that the applicable RoDTEP rates shall be limited to 50 per cent of the existing rates.
Refunds under the scheme range from 0.3 per cent to 3.9 per cent.
"RoDTEP benefits shall be restricted to 50 per cent of the notified rates and value caps with immediate effect," the DGFT said in a notification.
Commenting on the move, Federation of Indian Export Organisations (FIEO) President S C Ralhan said that the reduction in rates and the cut in value caps by 50 per cent came at a particularly challenging time when Indian exports are already facing significant global headwinds, including slowing demand, increasing uncertainty, and rising protectionism.
"We request the government to reconsider the decision," he said.
The country's exports rose marginally by 0.61 per cent to USD 36.56 billion in January, while the trade deficit widened to a three-month high of USD 34.68 billion, government data showed on Monday.
