(HT)
The government has decided to restore certain tax and duty benefits for specified categories of exporters in a move aimed at making Indian exports more competitive.
“The Government of India has announced the restoration of benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for exports made by Advance Authorization (AA) holders, Export-Oriented Units (EOUs), and units operating in Special Economic Zones (SEZs),” the commerce and industry ministry said in a statement on Tuesday. “The benefits will be applicable for all eligible exports made from 1 June.”
The reinstatement comes about four months after the benefits for these categories were suspended, causing concern among exporters reliant on duty-free schemes.
The decision is part of a broader effort to ensure a level playing field for all exporters, irrespective of the route they use.
The RoDTEP scheme had been operational for exports from domestic tariff areas (DTA) even after the benefit was withdrawn for AA, SEZ and EOU shipments on 6 February this year.
The RoDTEP scheme, introduced in January 2021 after the World Trade Organization ruled against India’s earlier export (WTO) incentive programmes, is meant to ease the burden of non-creditable taxes and levies—such as electricity duties and mandi fees—that are not refunded through other mechanisms.
Its design is WTO-compliant, and it is entirely digital, allowing for direct transfer of benefits to exporters.
Exporters said the move offers relief at a time global demand is uneven and domestic exporters are coping with thin margins. For small and medium enterprises (SME), which often operate on tight margins, such financial support can make a big difference in pricing.
“This is a much-needed relief for the SME export community. The withdrawal of RoDTEP benefits earlier this year had disrupted pricing models for many small and mid-sized exporters, especially those operating through SEZs and under advance authorization. Restoring these incentives will help us compete more confidently in global markets,” said Vinod Kumar, president of the India SME Forum.
