SME Times News Bureau | 19 Aug, 2021
Welcoming
the announcement of the Remission of Duties and Taxes on Exported
Products (RoDTEP) rates for the merchandise sector, FIEO President A Sakthivel said that the much-awaited rates will help in easing the
liquidity of the exporters, ensuring predictability and stability thus
helping competitiveness of exports over a long-time horizon.
He said
that he expects the rates are quickly uploaded in the system so that
exporters may generate their scrips instantly for utilizing the same
either for duty free imports or transferring it to increase their cash
flow.
FIEO said that RoDTEP rates, which provides zero rebating of
exports, are WTO compatible and thus will continue for long time until
all the products & services are brought within the ambit of GST and
embedded incidence is completely neutralized. The RoDTEP coupled with
GST refund and Duty Drawback ensure that our export products do not
contain any incidence of taxes and duties, added President, FIEO.
Hailing
the decision of the Government to extend the RoDTEP coverage to Advance
Authorisation/DFIA holders, EOU and SEZ units from a date to be
notified later, President FIEO urged the Government to also extend them
the benefits from 1st January, 2021. He also pleaded for
coverage of various sectors such as Pharma, Organic & Inorganic
chemicals, Article of Iron & Steel and Iron & Steel under RoDTEP
immediately with effect from 1st January, 2021.
Explaining about the low rates for many sectors, Dr Sakthivel said that
since the rates are fixed on the basis of the data furnished by the
industry, which was also affected due to the pandemic, the rates may be
reviewed if more comprehensive and updated data is furnished by the
industry. Moreover, there is a provision for an annual review of the
rates factoring the changes in the taxes & duties in respect of
parameters based on which such rates are fixed.
Sakthivel thanked the Prime Minister, Commerce & Industry
and Textiles Minister and the Finance Minister for providing RoDTEP
support to exporters so as to impart competitiveness to exports more so
at a time when exports growth is moving in northward direction
offsetting the pandemic.
President,
FIEO said that exports are on course to achieve US$ 400 Bn in the
current fiscal but logistics challenges particularly unavailability of
containers, shut out by shipping lines and high freights pose a serious
challenge. He requested the Government to take suitable measures so that
these hiccups can be overcome.