RoDTEP scheme: Textile Ministry seeks info on refund rates for garment exporters

Concerned about the fate of exporters from the garments and made-ups sector who had to shift to the new incentive scheme, Remission of Duties and Taxes on Export Products (RoDTEP), from January 1 2021, the Textiles Ministry has sought details from the Commerce Ministry on the rates of reimbursement they will be entitled to, a source closely tracking the matter has said.

“Exporters of garments and made-ups are nervous as they have no idea what reimbursement rates they will get under the new RoDTEP scheme and whether they would be comparable to the earlier scheme RoSCTL. The Textiles Ministry therefore wants to find out what the rates are before they are announced so it can have some say in the matter,” the official told BusinessLine.

The Commerce & Industry Ministry announced the implementation of the RoDTEP scheme for goods exports from January 1, 2021 to compensate exporters for the input taxes not reimbursed under existing schemes, including embedded levies (such as mandi tax, stamp duty etc.).

The popular Merchandise Export from India Scheme (MEIS) scheme was simultaneously withdrawn as it was ruled as a banned export subsidy by a WTO panel since the reimbursement rates were not calculated strictly on the basis of input taxes paid. As the outlay for RoDTEP is set to be much lower than the over ₹ 50,000 crore allocated for the MEIS, there are expected to be cuts in reimbursement rates…

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From The Hindu Business Line - 24/02/2021