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Govt to offer incentives to boost exports, notifies RoDTEP rates

August 17, 2021
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The government on Tuesday notified the rates for export incentive scheme RoDTEP and its rules with an aim to boost exports.


The government has decided to extend the benefit of Remission of Duties and Taxes on Exported Products (RoDTEP) scheme to all goods, with effect from January 1, 2021, according to a notification by the Directorate General of Foreign Trade (DGFT).


The rates for different sectors include 0.5 per cent, 2.5 per cent and 4 per cent. It has also notified guidelines for the scheme.


“The Centre has today notified the RoDTEP guidelines and rates. The rates will cover 8,555 tariff lines (products),” the Commerce Ministry said in a statement.


Under the RoDTEP, various central and state duties, taxes, levies imposed on input products among others are refunded to exporters to boost exports


Government’s new incentive scheme is compliant with World Trade Organization rules.


The government plans to spend Rs 19,440 crore offering incentives to exporters under the scheme that would be effective from January 2021, a trade ministry official told reporters.


India has set a target of $400 billion in merchandise exports for the current fiscal year ending in March 2022, compared to $291.2 billion in the previous fiscal year.


“The scheme for zero rating of exports will boost our exports and competitiveness in the global markets. The rates of RoDTEP will cover 8,555 tariff lines,” an official communique said.


“It may be noted that Government is leaving no stone unturned to support domestic industry and make it more competitive in the international markets.”


According to the statement, 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’.”


“RoDTEP is one such reform, 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.”

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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Tags: Commerce MinistryDirectorate GeneralDuty Entitlement Pass BookeconomyexportExport credit agenciesFreight transportinput productsInternational businessInternational tradeTrade
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