The Centre on Friday introduced that outbound shipments from Special Economic Zones (SEZs) and Export Oriented Units (EOUs), which account for a few quarter of India’s exports, will now be eligible for tax refunds underneath the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme.
Exporting corporations who use the Advance Authorisation (AA) scheme, that allows duty-free import of inputs which might be bodily included within the export product, may even be coated by the RoDTEP scheme, Commerce and Industry Minister Piyush Goyal stated.
While the advantages will kick in from March 11 for EoUs and AA holders, SEZs could have to wait till their IT methods are built-in with the automated ICEGATE system of the (*30*) part. Keeping budgetary allocations in thoughts, the RoDTEP advantages for these producers can be legitimate till September 30 for now, the Commerce Ministry stated, including that key sectors like Engineering, Textiles, Chemicals, Pharmaceuticals and Food Processing will achieve.
“This decision comes in recognition of the significant contribution these sectors make to India’s Exports, constituting approximately 25% of our exports. Amidst global economic uncertainties and supply chain disruptions, extending RoDTEP to the uncovered sectors such as AA, EOU, and SEZ units will help the exporting community in handling the international headwinds,” Mr. Goyal stated.
The RoDTEP scheme, launched in January 2021 to substitute an earlier export incentive scheme that was seen as non-compliant with World Trade Organisation (WTO) norms, has a Budget of ₹15,070 crore in 2024-25, and has up to now supplied help price ₹42,000 crore.
