Govt extends export benefits under tax refund scheme to pharma
RoDTEP is based on the globally accepted principle that taxes and duties should not be exported, and taxes and levies borne on the exported products should be either exempted or remitted to exporters.
New Delhi: Taking a major step to boost exports, the Centre has further expanded the scope of RoDTEP Scheme (Remission of Duties and Taxes on Exported Products) by including the exports made from the Chemical sector, Pharmaceuticals sector, and exports of articles of iron & steel under chapters 28, 29, 30 and 73 of ITC(HS) schedule of items.
The expanded list of items will be applicable for exports made from 15th December, 2022. This was a long-standing demand of the industry which has been accepted and will go a long way in boosting our exports and competitiveness in the global markets, generate employment and contribute to the overall economy. The expanded list of eligible export items under Appendix 4R will increase from the current 8,731 export items (8-digit tariff lines) to 10,342 export items (8-digit tariff lines).
RoDTEP is based on the globally accepted principle that taxes and duties should not be exported, and taxes and levies borne on the exported products should be either exempted or remitted to exporters. The RoDTEP scheme rebates/refunds the embedded Central, State and local duties/taxes to the exporters that were so far not being rebated/refunded. The scheme is being implemented from 1st January 2021 and the rebate is issued as a transferable electronic scrip by the Central Board of Indirect Taxes & Customs (CBIC) in an end to end IT environment.
It may be noted that Government is leaving no stone unturned to support domestic industry and make it more competitive in the international markets. Export-centric industries are being reformed and introduced to better mechanisms so as to increase their competitiveness, boost exports, generate employment and contribute to the overall economy. This will go a long way in achieving our vision of building an Aatmanirbhar Bharat.
In the present times, when exports are facing headwinds on account of signs of recession in some of the developed markets & supply chain disruptions on account of the Russia-Ukraine conflict, extension of RoDTEP to uncovered sectors like Chemicals, Pharmaceuticals & Articles of Iron & Steel is likely to enhance the export competitiveness of these sectors.
